DEBT WATCH- AIH’s Rawaj to recall EGP 226.5 mn of securitized bonds to benefit from falling interest: Rawaj Finance is planning to recall EGP 226.5 mn of securitized bonds from investors and reissue them at a lower interest rate following the central bank’s 300-bps cut in March, the local press reports, quoting an unnamed source at Rawaj’s parent company, Arabia Investments Holding (AIH). The consumer finance company had used proceeds from a recent securitized bond sale for onlending. Raya Holding was involved in a similar move earlier this year, when it said it was looking to reissue EGP 500 mn of securitized bonds in response to the central bank’s rate cut.

Rawaj has also been given preliminary regulatory approval to set up a factoring arm and plans to have the subsidiary up and running this year, the source said. This would improve its access to liquidity amid plummeting demand for car loans due to the covid-19 pandemic. We took a deeper look into how the virus is impacting the auto sector last week.