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Thursday, 14 January 2021

Palm Hills tapping Al Taamir for securitization?

Al Taamir is in talks to manage Palm Hills Developments’ (PHD) planned EGP 650 mn securitized bond issuance, which is expected to go to market this quarter, Al Taamir Chairman Mazen Hassan tells Al Mal. Al Taamir — a special purpose vehicle set up by the New Urban Communities Authority — led the largest ever four-tranche securitized bond offering in Egypt last year, and is expected to seek regulatory approval for PHD’s issuance by the end of the month. Al Taamir is looking to issue EGP 2 bn of asset-backed securities this year.

Securitization bonanza picking up steam: PHD late last year issued the company’s largest ever EGP 1.25 bn securitized bond offering following the frenzy of securitized bond issuances in 2020 that has so far shown no sign of slowing down this year. CI Capital’s Corplease has already closed a EGP 2.7 bn issuance earlier this month, while GB Auto subsidiaries GB Lease and Drive Finance, took a combined EGP 3 bn securitized bond offering to market. Amer Group and TMG earlier this week sold EGP 700 mn of asset-backed securities.

Sukuk markets are heating up

Expect to see a flurry of global sukuk activity this year as an economic recovery takes hold in the GCC, Turkey, Malaysia and Indonesia, S&P Global says. The research house also sees record-low interest rates and ample liquidity keeping market conditions “buoyant “ throughout the year, driving an anticipated USD 140-155 bn-worth of sukuk issuances this year. Some USD 139.8 bn of sukuk were sold in 2020, down from USD 167.3 bn in 2019.

The note doesn’t make mention of Egypt, which is gearing up for its first sovereign sukuk issuance once legislation that allows the government to sell the debt instruments to investors clears the House of Representatives. The bill should be finalized during the current legislative session, which began earlier this week.

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