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Sunday, 3 January 2021

Securitized bonds galore

CI Capital’s Corplease has closed a EGP 2.7 bn securitized bond issuance, the largest of its kind by a private sector company, investment bank Misr Capital said in a statement (pdf) over the weekend. The four-tranche sale was backed by EGP 3.4 bn in receivables from leasing contracts. The bonds pay out floating coupon rates that vary with the central bank’s overnight rate. Corplease, one of Egypt’s largest leasing companies, had completed a similar EGP 2.2 bn bond issuance roughly around the same time last year. Its latest sale comes as the securitized bond market has heated up amid the pandemic.

Who bought in? Banque Misr, Banque du Caire, Suez Canal Bank, Ahli United Bank, Abu Dhabi Commercial Bank, Bank ABC and the United Bank all got a piece of the issuance.

Advisors: Misr Capital acted as the financial advisor, lead manager, and underwriter. Its parent Banque Misr was an arranger, co-underwriter, and custodian. CI Capital acted as an arranger for Corplease, while Suez Canal Bank and Banque du Caire were co-underwriters. Law firm Zaki Hashem & Partners acted as counsel.

Who else sold securitized bonds? GB Auto subsidiary GB Lease took to market EGP 2 bn of bonds backed by EGP 2.7 bn in leasing receivables, Misr Capital said in a separate statement (pdf). The sale included three tranches, and also carried yields tied to the overnight lending rate.

Advisors: Banque Misr acted as arranger and underwriter, while Misr Capital was financial advisor, lead manager, and underwriter. BdC and Suez Canal Bank were co-underwriters. Dreny and Partners Law Firm provided advice.

CORRECTION- 3 January 2021: A previous version of this story incorrectly stated the roles of some advisors.

Drive Finance, also a GB Auto portfolio company, closed a triple-tranche EGP 892 mn securitized bond issuance, the proceeds of which will be used to trim its debt and expand in the market, the company announced (pdf) on Thursday. The bond tranches are divided as follows: A EGP 414.8 mn tranche with a 13-month tenor and AA+ rating; a EGP 407.6 mn tranche with a 36-month maturity and AA rating; and a third tranche worth EGP 69.6 mn carrying a 48-month tenory and rated A. The Middle East Credit Rating and Investors Services (Meris) rated the issuance.

Advisors: CIB acted as primary lead manager, arranger, and underwriter, and Dreny and Partners Law Firm as counsel.

Mortgage lender Qasatli issued securitized bonds worth EGP 700 mn last week, Managing Director Mohamed Youssef has said. The issuance is part of a larger plan to sell EGP 6 bn of asset-backed securities over the next few years.

Advisors: Qasatli signed a five-year securitization bond issuance contract with EFG Hermes to act as the sole financial advisor for issuances. Dreny and Partners Law Firm are acting as counsel.

Four subsidiaries of Amer Group Holding will sell EGP 607 mn of securitized bonds in a triple-tranche issuance after tapping the Financial Group for Securitization to manage the issuance, according to a bourse filing (pdf). The three tranches were rated AA+, AA, and A by Meris. The issuance will go to market once the necessary procedures and approvals are obtained, the company said without specifying a timeframe.

OTHER DEBT NEWS- The European Investment Bank (EIB) is providing Banque Misr with a EUR 425 mn credit line to support Egyptian SMEs and mid-cap firms that have been impacted by the pandemic by financing investment projects and working capital needs, it said in a statement. The initiative aims to boost private sector growth and employment in the country. The financing comes as part of the EIB contribution to the so-called Team Europe response to the covid-19 crisis that was launched last April to aid EU partner countries.

WHO’S IN THE MARKET FOR DEBT?

  • Gharably Integrated Engineering Co. (GIECO) has signed a EGP 3.8 bn syndicated loan agreement with the National Bank of Egypt, Bank of Alexandria, Suez Canal Bank, and Export Development Bank Of Egypt to upgrade the new Abu Qir Port, reports the local press.
  • The Alexandria Port Authority landed a EGP 1.8 bn syndicated loan from the National Bank of Egypt, Banque Misr, and Banque du Caire to develop internal railways and tracks and link them to the Sixth of October Dry Port with a cargo line, Al Mal reports, citing unnamed sources.
  • CIB picked up EGP 500 mn of Sarwa Capital‘s most recent EGP 1.6 bn securitized bond issuance that was backed by the portfolios of Sarwa subsidiary Contact Credit and its affiliate companies, Al Mal reports.
  • Albatros Holding is in talks with South African fund manager Vantage Capital for a USD 40 mn convertible loan to finance three planned hotels, the local press reports.

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