Back to the complete issue
Tuesday, 21 July 2020

Raya closes EGP 562 mn securitized bond offering

DEBT WATCH- Raya closes EGP 562 mn securitized bond offering: Raya Holding has closed a four-tranche, EGP 562 mn securitized bond sale with a weighted average yield of 10.78% to finance its debt, according to a disclosure to the bourse (pdf).

About the issuance: The securities are backed by 124k consumer loans and micro loans for SMEs held by three of Raya’s subsidiaries — Raya Electronics, Aman Financial Services, and Aman Microfinance — with a delinquency rate of less than 3%. The six-month tranche — accounting for more than a third of the issuance — carries a 10.53% yield; the second, nine-month tranche carries a yield of 10.68%; the yield on the third, one-year tranche is 10.73%; and the final three-year tranche has a yield of 11.73%.

Advisors: CIB was the lead underwriter and sole lead arranger for the transaction, while the National Bank of Egypt, Banque Misr, Misr Capital, Attijariwafa Bank-Egypt, and Suez Canal Bank were co-underwriters. Dreny & Partners were legal counsel, United for Auditing, Taxation, Advisory and Financial Services was auditor, while Moody’s regional affiliate MERIS rated the offering.

Correction: 21 July 2020

A previous version of this story incorrectly referred to United for Auditing, Taxation, Advisory and Financial Services as United Accounting.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.