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Wednesday, 8 March 2023

Bedaya + Al Oula close EGP 1 bn securitized bond sales

Two mortgage companies issue securitized bonds: Bedaya Mortgage Finance and Al Oula Mortgage Finance each issued securitized bonds worth nearly EGP 1 bn yesterday.

#1- Bedaya closes EGP 958 mn securitization: Bedaya Mortgage Finance issued securitized bonds worth EGP 958 mn in the second round of its EGP 3 bn program, according to a statement (pdf) from Dreny and Partners, which was the legal advisor on the transaction.

About the issuance: The six-tranche bond is backed by a receivables portfolio of EGP 1.56 bn, representatives of Dreny and Partners told us. The tranches received ratings ranging from A to AA+ from the Middle East Rating and Investor Service (MERIS).

Bedaya is now more than halfway through its EGP 3 bn securitization program. It issued EGP 651.2 mn worth of bonds to kick off the program last year. The entire program should be completed within the next two years depending on Bedaya’s operational needs, Dreny and Partners told Enterprise.

Who bought in? Arab African International Bank (AAIB), CIB, and National Bank of Egypt (NBE), Dreny and Partners said.

More advisors: EFG Hermes acted as financial advisor. It was joined by NBE, AAIB and CIB as underwriters, with NBE also acting as bookrunner and custodian. KPMG was the auditor.

About Bedaya: The mortgage provider is a joint venture between EFG Hermes Holding, Talaat Moustafa Group and GB Capital.

#2- Al Oula Mortgage Finance closed its first securitization issuance worth EGP 998.5 mn, also part of a planned three-year, EGP 3 bn program, according to a separate press release (pdf) from Dreny and Partners. The six tranches were backed by an unspecified receivables portfolio and were rated from A to AA+ by MERIS.

Advisors: EFG Hermes acted as the financial advisor. It also acted as an underwriter alongside NBE, AAIB and Banque du Caire, with AAIB acting as the custodian and the subscription. Baker Tilly was the auditor and the legal advisor for the issuance was Dreny and Partners.

** The securitization market in 2023: The two issuances bring the total securitized bonds brought to market so far this year to almost EGP 9.6 bn. That’s more than the EGP 8 bn that went to market in the same period of last year — which was already a hot year for securitization issuances.

CORRECTION- 
This story was corrected on 8 March, 2023 to remove Al Ahly Pharos from the list of banks that bought in to Bedaya’s securitization issuance. Al Ahly Pharos was not involved in the transaction. AAIB also acted as the subscription bank, rather than the bookrunner as a previous version of this story incorrectly stated.

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