The Financial Regulatory Authority (FRA) is targeting a total of EGP 16 bn in securitized bond issuances in 2019, of which EGP 10 bn have already been issued, Sayed Abdel Fadeel, head of the FRA’s corporate finance department, told Al Mal. Consumer and structured-finance player Sarwa Capital said last week it’s issuing EGP 4 bn in securitized bonds for the New Urban Communities Authority (NUCA) before the end of this month.

FRA grants GB Auto’s Drive Finance preliminary approval for securitized bond issuance: Meanwhile, the  has given GB Auto’s Drive Finance preliminary approval from the FRA to undertake a securitized bond issuance, a company source told Enterprise. Al Mal had reported on Tuesday that the companys had requested approval for a EGP 400 mn securitized bond issuance. A company source, however, told us that a decision on the size of the issuance has yet to be made. The newspaper also reported that CIB and the Arab African International Bank (AAIB) will manage the issuance. The two banks will cover the issuance alongside the National Bank of Egypt, while El Derini and Partners will act as legal advisor.

Sukuk issuances also in the books for this year? CIAF Leasing, a company under the Civil Aviation Ministry, is seeking the FRA’s approval for a USD 50 mn-worth sukuk issuance that it hopes to execute this year after MERIS Ratings finishes its evaluation, Abdel Fadeel said.

 

CORRECTED on 18 September 2019

Drive Finance only received a preliminary approval to make the securitized bond issuance. The size of the issuance had yet to be decided.