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Sunday, 17 May 2020

Raya plans EGP 640 mn securitized bond sale, CIB to manage offering

DEBT WATCH- Raya plans EGP 640 mn securitized bond sale, CIB to manage offering: Raya Holding is planning a new EGP 640 mn securitized bond issuance to finance its short-term debt and has reportedly hired CIB to manage the offering, Al Shorouk reports, quoting unnamed banking sources. This comes as part of a program to issue EGP 1 bn-worth of asset-backed securities this year. Raya completed a EGP 500 mn offering in October — managed by CIB, the National Bank of Egypt (NBE) and Attijarawafa Bank — but last month sources told the local press that the company was looking to reissue the bonds in light of the Central Bank of Egypt’s 300 bps interest rate cut in March.

CIB is also working on a EGP 10 bn issuance by NUCA: The New Urban Communities Authority’s (NUCA) single-tranche EGP 10 bn securitized bond offering is close to completion, sources told the newspaper. The consortium of banks working on the issuance includes CIB, NBE, QNB, and the European Bank for Reconstruction and Development. NUCA recently received the backing of the Finance Ministry to sell EGP 20 bn-worth of securitized bonds and borrow another EGP 20 bn from EBRD and the NBE over the coming period to finance work in new cities. The authority securitized EGP 10 bn of its receivables late last year (here and here) as part of the ongoing program.

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