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.