Over its 36-year history of success, EFG Hermes has gone from strength to strength. From a leading Egyptian investment bank to a fully integrated financial service provider with presence in 13 markets across four continents — EFG Hermes has evolved not only to match shifting market dynamics but also meeting growing stakeholder needs. Through organic growth, strategic mergers and acquisitions, and a lateral business strategy, EFG Hermes has transformed itself into a leading financial services corporation with a diverse product range, encompassing both investment banking services as well as non-bank financial services. The Firm leverages its expansive on-the-ground presence across the world, an ever-expanding portfolio of services, and commitment to driving shareholder value to cement its leadership position across some of the world’s most rapidly growing markets.
What We Do
Through its two platforms, the Investment Bank and Non-Bank Financial Institutions (NBFIs) the group is able to consistently bring innovative products to the table, offering a comprehensive service portfolio to meet the evolving needs of its growing base of institutional investors and retail clients. During 2020, the Firm further expanded its foothold across fast-growing and increasingly attractive markets despite volatility that plagued markets the world over.
The Investment Bank
EFG Hermes Securities Brokerage offers its client base, be they individual retail investors or some of the most prominent institutional investors and high-net-worth-individuals, an unrivalled access to FEMs opportunities. Today, the division stands as the leading brokerage house in both the MENA region and across the wider FEM space, with presence in Egypt, Kuwait, the UAE, Saudi Arabia, Oman, Jordan, Pakistan, Kenya, and Nigeria Bangladesh and Vietnam.
Throughout 2020, EFG Hermes continued to strengthen market shares across its footprint, ranking first on the Egyptian Stock Exchange (EGX), both the Dubai Financial Market (DFM) and NASDAQ Dubai, the Kuwaiti Stock Exchange (KSE), and the Nairobi Securities Exchange (NSE). It placed second in Abu Dhabi and Nigeria (by value traded) and secured a third-place spot in Oman. The division currently covers 95% of the MSCI Frontier and MSCI Emerging Frontier indices and can execute in over 75 markets across Frontier and Emerging markets.
Since the division’s launch in 1995, EFG Hermes Investment Banking has climbed the regional rankings to become a leader in M&A advisory, Equity Capital Market (ECM) executions, and Debt Capital Market (DCM) capabilities. Leveraging its ability to tap a global client base and utilize its unrivalled network of MENA clients to raise demand for compelling opportunities, the division continued to execute a growing number of transactions across an expanding global footprint. In 2020, the division posted yet another year of record-breaking 24 transactions worth a total of USD 1.7 billion despite the incredibly challenging circumstances. Over the last twelve months, EFG Hermes Investment Banking team closed 14 DCM transactions at a value of USD 757.6 million, 3 ECM transactions worth USD 828.1 billion, and 7 M&A deals valued at USD 99.0 million.
EFG Hermes Research is the leading provider of real-time, high-quality coverage of FEM. The division brings together equities, macro, strategy, and index research to offer fair, and comprehensive analysis that helps guide EFG Hermes’ other lines of business and the Firm’s large client base when making financial decisions. Leveraging a team of experienced analysts and presence in numerous markets around the world including Cairo, Dubai, Pakistan, Kenya, Nigeria, Saudi Arabia, Oman, and the UK, the division provides unmatched insights on 299 equities across 22 markets as of year-end 2020. In 2018, EFG Hermes launched EFG Hermes One, an innovative, retail-oriented online trading platform that has quickly become the go-to information provider for analysts and clients looking for reliable daily insights on local and regional markets.
EFG Hermes Asset Management is the MENA region’s largest asset manager serving an increasingly diverse client base including multinational corporations, endowments, foundations and family offices with a continued focus on long-term and institutional clients. The division offers a wide array of tailored products including mutual funds and discretionary portfolios with both country-specific, regional, conventional, and sharia-compliant mandates. As of year-end 2020, the division recorded USD 2.1 billion in regional AUM and EGP 19.1 billion in the local Egyptian market.
EFG Hermes Private Equity today is widely recognized as a leading player in the field with an unparalleled ability to raise money from around the world to invest across the MENA region and Europe. The division invests across a wide spectrum of sectors with a specific focus on renewable energy, education, and healthcare. The division manages its renewables investments through its Vortex Energy platform, which was established in 2014 to invest in renewable energy projects. The EFG Hermes Egypt Education Fund is a USD 150 million investment fund launched in 2018, as part of a USD 300 million education platform in partnership with Dubai-based education provider GEMS Education. Rx Healthcare Management was established to manage diverse investments across the healthcare sector to meet the ever-growing demand for healthcare products and services across Egypt as well as the MENA and Africa regions at large.
EFG EV Fintech
Launched at the end of 2017, EFG EV Fintech is the first fintech-focused startup accelerator and early-stage venture capital fund in Egypt. It was established as a joint venture between EFG Finance and Egypt Ventures, a government-backed VC fund. The company’s goal was to invest in more than 20 fintech startups in a period of five years and bolster Egypt’s fintech ecosystem in the process. To maximize its impact, EFG EV Fintech offers two separate investment programs. In partnership with Falak Startups, the company operates an accelerator for seed-stage startups, which invests up to EGP 1 million in cash and EGP 300,000 worth of support functions in up to 10 companies per year. EFG EV Fintech works closely with its startups and supports them from investment to exit. In parallel, the venture capital arm invests up to EGP 5 million per company in later-stage startups, bridging the gap between seed finance and series-A funding. To date, EFG EV Fintech boasts the largest fintech portfolio in Egypt and its investee startups are making waves in the Egyptian entrepreneurship ecosystem.
The Non-Bank Financial Institution
EFG Hermes Finance acquired Tanmeyah Microenterprise Services in 2016 and it has since become the Firm’s flagship company under its NBFI platform. Tanmeyah, which today stands as the number one non-bank provider of microfinance solutions in Egypt, provides financing for micro and very small businesses across Egypt. Through its financing programs, the company gives its thousands of clients access to the necessary capital to find a path out of poverty which supports them to grow their businesses. The company also offers products and services that complement the diverse needs of small businesses. As of year-end 2020, Tanmeyah had 285 operational branches catering to the needs of over 335,000 borrowers in 25 of the 27 Egyptian governorates.
EFG Hermes Corp-Solutions
EFG Hermes Corp-Solutions is a leading provider of leasing and factoring solutions, in addition to value-added advisory services offered to a wide range of clients, including large corporations and SMEs alike. The Firm’s leasing arm was established in 2015 under EFG Hermes Leasing, offering its clients a range of tailored solutions with the fastest turnaround time in the industry. Seeking to further diversify our NBFI platform, the Firm introduced EFG Hermes Factoring in 2018, offering alternative sources of financing to companies seeking to grow their businesses and meet their working capital needs. In July 2020, EFG Hermes consolidated its factoring and leasing arms to form EFG Hermes Corp-Solutions, offering a full range of financing solutions to suit clients of all sizes.
valU, which was launched in 2017, is EFG Hermes’ first fintech product offering consumer finance services and is part of a wider diversification strategy by the Firm as it looks to tap into new, growing segments of the financial sector. The innovative solution gives customers the ability to use their smartphones to buy now and pay later from 898 merchants across Egypt over convenient installments from 6 to 60 months. With strong marketing efforts since inception, valU has quickly grown in popularity with over 91,000 active users as of year-end 2020.
Established in Saudi Arabia in 2014, PayTabs is an award-winning global fintech solutions platform. Following the successful replication of its business model into other countries in the region, the company began eyeing the Egyptian market, seeking to capitalize on the lucrative opportunities available in it as well as a flexible and ever-evolving market landscape poised for digital payment growth. In 2019, EFG Hermes partnered with PayTabs to establish PayTabs Egypt as part of the Firm’s growing NBFI platform, working together to build a cutting-edge platform to facilitate financial inclusion and catering to both the online and digital payment needs of multiple consumer segments.
Bedaya offers move-in finance solutions with the fastest turnaround time in the market, with loan tenures over 10 years. It was founded in 2019 as a joint venture between EFG Hermes, Talaat Moustafa Group (TMG), and GB Capital, the NBFI arm of GB Auto. Each partner holds a third of the firm’s equity, with Bedaya’s initial paid-in capital set at EGP 150 million.
Tokio Marine Egypt Family Takaful
In 2020, EFG Hermes and GB Auto entered into an agreement to acquire a 75% stake in life insurance player Tokio Marine Egypt Family Takaful Under the agreement, EFG Hermes Finance and GB Capital, the NBFI arm of GB Auto, will each own 37.5% of the company. Tokio Marine Egypt Family Takaful is owned by Japan-based Tokio Marine Group, a world-renowned leader in insurance and reinsurance and the largest general insurer in Japan. The company is set to offer individual and corporate clients a variety of solutions covering health, home, life and car insurance.
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