EFG Hermes successfully concludes advisory on latest EGP 750mln financing transaction for MARAKEZ's Mall of Arabia – ZAWYA

The transaction is part of a wider EGP 2.25 billion financing package arranged by EFG Hermes’ Investment Banking division and EFG Hermes Corp-Solutions for MARAKEZ
Cairo: EFG Hermes, the leading investment bank franchise in Frontier Emerging Markets (FEM), announced today that its Investment Banking division successfully closed advisory on the latest EGP 750 million financing over two tranches in a sale and leaseback package for MARAKEZ, one of the largest mixed-use developers in Egypt. The division acted as the sole financial advisor and arranger on the transaction, while EFG Hermes Corp-Solutions, a wholly-owned subsidiary of EFG Hermes Holding and one of Egypt’s leading leasing and factoring companies, acted as the leasing partner and EFG Hermes’ recently acquired aiBANK acted as the lender.
The transaction comes as part of a wider EGP 2.25 billion financing package at the level of Mall of Arabia, MARAKEZ’s mega-mall located in 6th of October, covering a vast area of over 620,000 sqm. Mall of Arabia hosts a wide array of premium local and international brands, in addition to a residential development.  
The participation of aiBANK in the transaction alongside EFG Hermes’ Investment Banking division and EFG Hermes Corp-Solutions marks a key milestone in the group’s journey of collaboration, cross-selling, and the creation of synergies between its business lines to better serve its clients.
Maged El Ayouti, Managing Director and Deputy Head of EFG Hermes’ Investment Banking division, commented, "We are proud to have carried on our role as trusted partners in our long-standing relationship with MARAKEZ in their EGP 2.25 billion financing transactions over the past two years. This transaction is a testament to our ability to seamlessly cross-sell products across EFG Hermes, with this transaction seeing the first-time participation of both EFG Hermes Corp-Solutions and aiBANK alongside the Investment Banking division, cementing our positioning as a one-stop-shop for our clients’ ever-evolving financing needs. This latest funding marks as a steppingstone towards tapping the local debt capital market (EGX) in the near future through prospective financing that capitalizes on the strong asset profile and robust cash flow generation of MARAKEZ’s landmark property, Mall of Arabia.”
Talal El Ayat, CEO of EFG Hermes Corp-Solutions, said “Collaborating with a leading real estate development such as MARAKEZ is essential to our strategy of forging partnerships across industries that support our client’s growth plans through expanding their financing solutions. We are excited for the success of this transaction, which has maximized the benefits of our cross-selling power to allow us to add value through our premium financing opportunities to one of Egypt’s most rapidly expanding sectors that continues to profit from strong demand and solid growth.”
Tamer Seif, CEO and Managing Director of aiBANK, commented, “We are extremely delighted to have collaborated with other subsidiaries across EFG Hermes Holding to provide support to MARAKEZ, allowing us to diversify our portfolio and increase our exposure to high quality, income-generating businesses. This transaction is part and parcel of our strategy to expand our offering and venture into new spaces through forging lucrative partnerships across key industries such as real estate, helping provide necessary financing for major projects across the country.”
Basil Ramzy, CEO of Marakez, said “This collaboration comes within our strategy to join hands with established partners that further consolidate our leading market position and boost our expansion plans in Egypt and beyond it. EFG Hermes is a longstanding partner of MARAKEZ and the current transaction is a testament to our solid financial performance and certainly advances our growth in new directions and landscapes.” 
The transaction is a continuation to a series of advisory assignments successfully concluded for MARAKEZ by EFG Hermes to support the Group in funding its developments and, in turn, maximizing shareholder value. MARAKEZ has proven to be a resilient player in the real estate sector over the years, underpinned by a strong recurring income revenue base, and this transaction is proof of their sound financial performance and position in the market.
This transaction with MARAKEZ comes on the heels of an EGP 1.5 billion financing arranged for ODE’s O-West and an EGP 425 million securitized bond issuance for Pioneers Properties for Urban Development that were both concluded last month. It reinforces the leadership position of EFG Hermes’ Investment Banking division in the real estate sector across debt, equity raising, and M&A transactions, having concluded a series of transactions in 2022 involving advisory on Bedaya Mortgage Finance’s first securitization issuance, advisory and arrangement on an EGP 1.05 billion sale and leaseback agreement and a securitization issuance for MNHD, Egypt’s debut Sukuk issuance for TMG, and LMD Visionary Real Estate Development Company financing.
In 2021, EFG Hermes successfully advised on a series of securitization transactions for leading real estate developers, namely for TMG, MNHD, SODIC, Misr Italia Properties, Pioneers Properties, amongst other transactions. Additionally, it concluded advisory for SODIC, a premier real estate developer in Egypt, on the sale of 85.5% of its EGX-listed shares through an MTO to a consortium comprised of UAE’s Aldar Properties and ADQ in a deal worth around USD 388 million.
-Ends-
About EFG Hermes Holding
With a current footprint spanning 13 countries across four continents, EFG Hermes Holding (EGX: HRHO.CA – LSE: EFGD) has grown over 38 years of success to transform from a pure-play investment bank in MENA into a universal bank in Egypt with the leading investment bank franchise in Frontier Emerging Markets (FEM). Drawing on our proven track-record and a diverse team of talented employees, we provide a wide spectrum of financial services that include advisory, asset management, securities brokerage, research and private equity to the entire FEM region. In our home country, we have the fastest-growing non-bank financial institutions (NBFI) platform with operations covering microfinance, leasing, factoring, Buy-Now Pay-Later (BNPL), digital payment solutions, mortgage finance and insurance.
And with its latest acquisition of majority stake in aiBANK, the Firm was able to provide commercial banking products and services.
Through its three verticals, the Investment Bank, Non-Bank Financial Institutions (NBFI) and Commercial Bank, the group is perfectly positioned to consistently bring disruptive financial products and services to the market space, offering a holistic portfolio that best serves its growing base of individual clients and businesses of all sizes. 
Proudly present in: Egypt | United Arab Emirates | Saudi Arabia | Kuwait | Oman | Jordan | Pakistan | UK | Kenya | USA | Bangladesh | Vietnam | Nigeria
For further information, please contact:  
The EFG Hermes Holding Public Relations Team
publicrelations@efg-hermes.com 
May El Gammal 
Group Chief Marketing & Communications Officer of EFG Hermes Holding
melgammal@efg-hermes.com 
Note on Forward-Looking Statements 
In this press release, EFG Hermes Holding may make forward looking statements, including, for example, statements about management’s expectations, strategic objectives, growth opportunities and business prospects. These forward-looking statements are not historical facts but instead represent only EFG Hermes Holding’s belief regarding future events, many of which, by their nature are inherently uncertain and are beyond management’s control and include among others, financial market volatility; actions and initiatives taken by current and potential competitors; general economic conditions and the effect of current, pending and future legislation, regulations and regulatory actions. Accordingly, the readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they are made. 
About MARAKEZ for Real Estate Investment
MARAKEZ is a subsidiary of the Saudi Arabian conglomerate and largest mall developer and operator in the region –The Fawaz AlHokair Group. MARAKEZ is one of the largest mixed -use developers in Egypt with a portfolio of projects with one of the highest recurring revenue profiles in the country. Anchored by the flagship Mall of Arabia in West Cairo, MARAKEZ projects include the first residential towers in 6th October, “AEON”, as well as “D5M”, “Mindhaus” and “District Five residences” in New Katameya. In addition to the opening of “Mall of Tanta” in 2019, “Town Center” in 2020 and the upcoming opening of “Mall of Mansoura” in 2023.
For more information, please visit:
www.marakez.net
www.fawazalhokair.com
www.arabiancentres.com

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