Youm7-
EFG Hermes, the leading investment bank in the Middle East and North Africa and a subsidiary of EFG Holding, announced the successful completion of its advisory services for a EGP 5.1 billion bond issuance for EFG Financial Solutions, the non-banking financial arm of EFG Holding specializing in leasing and factoring services.
This issuance represents the largest corporate bond issuance in the history of the Egyptian debt market, reinforcing EFG Hermes’ position as a leading advisor and arranger for complex debt market transactions. It aims to provide substantial funding to support the continued expansion of the company’s leasing and factoring portfolio.
EFG Hermes acted as the sole financial advisor, sole lead manager, bookrunner, underwriter, and arranger for the issuance. This issuance marks the fourth for EFG Financial Solutions, further enhancing its access to diverse funding sources. Effective and disciplined liquidity management remains a key priority for non-bank financial institutions.
The bonds have a 13-month maturity and the company has received an A- credit rating. The issuance is divided into two tranches to cater to different investor preferences and meet their needs in terms of maturity dates and repayment methods:
• Tranche (A): A fixed-rate tranche with a single payment at maturity.
• Tranche (B): A variable-rate tranche with quarterly repayments.
Maged El-Ayouti, Co-Head of Investment Banking at EFG Hermes, stated: “This landmark issuance reflects the continued evolution of Egypt’s debt markets and the growing institutional demand for carefully structured corporate credit. The execution of a transaction of this size underscores the strength of EFG Hermes’ advisory and distribution platform, as well as our ability to design financing solutions that meet the objectives of issuers while simultaneously aligning with investor expectations.”
For EFG Financial Solutions, this issuance follows a strong performance in 2025, despite the challenges posed by the macroeconomic environment, tightening liquidity conditions, and regulatory constraints that impacted leasing activity in the local market. Under these circumstances, the company focused on rapid execution, disciplined risk selection, and proactive balance sheet management, enabling it to maintain margins and achieve growth in both its leasing and factoring activities.
The momentum continued into the first quarter of 2026, with the leasing business recording net sales of financed assets worth EGP 5.0 billion, a 40% increase quarter-on-quarter and a 125% increase year-on-year, marking its highest quarterly contract level ever. This performance was supported by financing of EGP 1.8 billion in February and EGP 1.5 billion in March, following agreements signed with two leading real estate developers.
Talal Al-Ayat, CEO of EFG Financial Solutions, said: “This bond issuance marks a significant milestone for EFG Financial Solutions and directly supports our ability to finance high-quality growth across our leasing and factoring platforms. Over the past year, we have demonstrated our resilience in a challenging operating environment by focusing on disciplined lending, strong client selection, and effective balance sheet management. The proceeds from this transaction will strengthen our funding position, support portfolio expansion, and enable us to continue serving a diverse and creditworthy client base across key sectors. The record momentum achieved in the first quarter of 2026 reflects the quality of our platform and the confidence of our banking, investment, and client partners.”
Through its leasing and factoring activities, EFG Financial Solutions continues to channel capital into productive sectors that are pivotal to Egypt’s economic growth, including real estate, tourism, oil and gas, and consumer fuels. At a time of tight liquidity and high levels of credit selectivity, the company’s financing solutions help creditworthy institutions fund expansion plans, working capital needs, and job creation. Backed by a strong pipeline of pending financing and strategic partnerships across multiple sectors, EFG Financial Solutions is well-positioned to deepen its client relationships, serve a broader client base with specific requirements, and capitalize on high-quality growth opportunities that create value for both clients and the economy as a whole.
Mai Hamdy, Executive Director of Debt Markets at EFG Hermes, added: “The two-tranche structure was designed to provide repayment flexibility and broaden investor participation in the issuance.” The strong execution of this transaction underscores the continued investor appetite for high-quality corporate credit in Egypt and the role that carefully structured debt instruments can play in supporting diversification of funding sources, market deepening, and sustainable portfolio growth.
Following this issuance, EFG Financial Solutions’ total debt issuances now stand at EGP 16.7 billion, comprising four securitization issuances totaling EGP 7.6 billion, four bond issuances totaling EGP 8.7 billion, and one short-term bond issuance of EGP 433 million. The proceeds from this latest issuance will be used to fund operating activities and support portfolio growth.
Bank NXT acted as the payment agent, El Derini & Partners served as legal advisor, and KPMG acted as the auditor.
