Raya Holding to establish three subsidiaries in 1H2020
Raya Holding is joining the rush into non-bank financial services and aims to set up three subsidiaries in 1H2020, including a microinsurance company, a financial and micro-leasing arm, and a third company for securitization, CFO Hossam Hussein told Mubasher.
The company is going to find it hard to get regulatory approval as long as CEO Medhat Khalil’s dispute with the Financial Regulatory Authority (FRA) remains unresolved. The regulator blocked the company’s attempt to establish Aman Securitization Company until Khalil paid an EGP 110 mn fine stemming from a dispute with the FRA — a verdict he has since appealed.
Raya is also issuing EGP 600 mn of securitized bonds in April, Hussein said. CIB, the National Bank of Egypt, Banque Misr, and Banque du Caire will handle the transaction, he suggested. The FRA in November signed off on a four-tranche, EGP 497.5 mn securitized bond issuance for its Raya Electronics, Aman Financial Services, and Aman Microfinance subsidiaries. Raya had issued its first securitized bond offering worth EGP 500 mn for the same three subsidiaries at the end of October 2019.