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Monday, 9 November 2020

Corplease to hold record-breaking EGP 2.5 bn securitized bond issuance

DEBT WATCH- Corplease is planning to issue EGP 2.5 bn of securitized bonds in an offering that will set a new record as the largest private sector issuance in Egypt, Al Mal reports, citing unnamed sources with knowledge of the matter. The story gave no timeline for the transaction, but said that Banque Misr investment arm Misr Capital is on board to act as lead manager. Corplease, a subsidiary of CI Capital, is in talks with the Financial Regulatory Authority to greenlight the issuance, they said. Corplease had issued a four-tranche EGP 2.2 bn bond issuance earlier this year in a sale that was also managed by Misr Capital. Misr Capital parent company Banque Misr took a stake of more than 24% in CI Capital earlier this year, leading to speculation that Misr Capital and CI Capital could merge some of their operations.

Securitized bonds are becoming an increasingly popular means of debt finance: Corplease, Sarwa, Madinet Nasr Housing, Palm Hills, and Raya are just some of the private sector firms to sell asset-backed securities to investors this year. Sizes have ranged anywhere from Premium Card’s EGP 182 mn offering to Sarwa’s EGP 1.8 bn issuance in May. The New Urban Communities Authority has been responsible for the largest issuance this year, selling EGP 10 bn of bonds to investors to fund new developments in the new capital and New El Alamein.

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