Back to the complete issue
Wednesday, 29 December 2021

GlobalCorp, Tamweel close securitized bond offerings

GlobalCorp issued the first EGP 985 mn tranche of a EGP 5 bn securitized bond program, the non-bank lender announced in a press release. The program is set to be completed by 2023, according to the statement.

The issuance includes three tranches with ratings of A+, AA and A, respectively, according to the factoring and leasing firm. The bonds are backed by a consortium of six Egyptian banks: Attijariwafa Bank, Arab African International Bank, Ahli United Bank, Suez Canal Bank, CIB and Banque Misr, Al Mal cited sources as saying.

The size of the overall program has increased, even if this tranche is a bit smaller than we’d expected. GlobalCorp was planning to sell EGP 1.1 bn of securities by the end of this year, as part of a EGP 3-3.5 bn issuance set to be completed by 2023, CEO and Managing Director Hatem Samir was quoted as saying in September.

ADVISORS- CIB and Misr Capital were financial advisors for the offering, while Dreny & Partners were counsel.

MEANWHILE-

Tamweel Mortgage Finance also closed the first EGP 460 mn tranche of a EGP 3 bn securitized bond issuance, Al Borsa quotes Managing Director Mohammed El Kahki as saying. The three tranches carry tenors of 12, 36, and 60 months. The issuance was backed by a consortium of seven banks: The National Bank of Egypt, Banque Misr, CIB, AAIB, Suez Canal Bank, Ahli United Bank, and Attijariwafa Bank.

ADVISORS- CIB was lead manager, promotor, and underwriter of the issuance. Dreny & Partners provided counsel. Meris provided the credit rating for the issuance.

BACKGROUND + WHAT’S NEXT-

The securitized bond market is hot, but not as hot as it was before: By our count, a total of 14 issuances worth a combined EGP 12.63 bn went to market. This is a little over half of the EGP 22.1 bn raised last year and the EGP 22 bn raised in 2019. But the year isn’t over yet, with CI Capital’s leasing arm Corplease having said that it was looking for a securitized bond issuance worth more than EGP 3 bn in December 2021. GB Lease had also reportedly been mulling a multi-tranche EGP 1.6 bn securitized bond issuance this month.

That said, things do look interesting for 2022: The FRA said earlier this week (pdf) that it will approve before the year is out 11 new sales worth a combined EGP 11.5 bn. The regulator gave no indicator of which companies will be issuing the bonds, or when they could go to market.

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.