Back to the complete issue
Sunday, 21 February 2021

Raya’s Aman to tap securitization market in 1Q2021

Raya subsidiary Aman is planning to take EGP 600 mn in securitized bonds to market before the end of the quarter, Raya’s CFO Hossam Hussein said. The sale will be open to qualified institutional investors, banks, and other financial institutions, and will be split into tranches with tenors ranging from six months to over five years, Hussein noted. The company plans to use the proceeds to fund its expansion plans in 1H2021, he added, without providing details on planned investments.

Advisors: CIB and the National Bank of Egypt as lead managers and promoters and Dreny and Partners Law Firm as counsel. UHY, meanwhile, will act as a financial advisor and auditor.

Raya’s debt fund isn’t part of the plan: The issuance is a traditional offering of securitized bonds that receive a credit rating and are taken to market through an SPV — the company isn’t bringing in a fund it is planning to set up as an alternative to traditional securitization, Ahmed NourEldin Hassan, Raya’s head of corporate finance and investment, told us. Sources said earlier this month that Raya is mulling setting up a “movable assets” fund that would raise money to fund non-banking financial services (NBFS) companies by investing in their portfolios, including Raya’s own subsidiaries. Chatter in the market was that Aman could sidestep a traditional offering and instead tap the fund. Hassan says while Raya is still interested in the fund, it’s still weighing “the pros and cons.”

Unclear on what securitization is? Enterprise Explains has your back.

Securitization isn’t the only thing in Aman’s pipeline: The company has plans to debut on the EGX. It’s targeting an initial public offering in the coming two years, by which time it hopes to have captured more market share.

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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.