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Tuesday, 16 November 2021

CIRA to borrow EGP 375 mn for capex spending + EgyLease closes securitized bond issuance

EGX-listed education outfit CIRA is borrowing EGP 375 mn from Ahli United Bank to finance fresh investments, the company said in a regulatory filing (pdf) yesterday. The company’s board greenlit the decision earlier this week, the disclosure says. No further details or information were provided in the disclosure and a company spokesperson was not immediately available for comment.

This is the latest loan CIRA is taking on to fund its investment plans: The company had said in September that it’s planning to borrow EGP 260 mn from an unnamed Egyptian bank to fund unspecified new projects. CIRA also said earlier this year that it was in talks with a syndicate of three international banks for a credit facility to finance around 40-50% of its planned EGP 2 bn applied tech university.

MEANWHILE- Financial leasing company EgyLease closed a EGP 749.8 mn securitized bond issuance, according to a statement (pdf) from Misr Capital, which acted as co-lead on the transaction alongside state-affiliated securitization firm Al Taamir.

The securitized bond market has been on a roll these past few months, with Raya subsidiary Aman completing the issuance of EGP 585 mn in securitized bonds, while upmarket developer SODIC closed an EGP 343 mn securitized bond sale. Palm Hills Development, Premium International, and Arabia Investment Holdings subsidiary Rawaj also took sales of the asset-backed securities to market earlier this year.

Unclear about how securitized bonds work? We’ve got you covered right here.

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