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Sunday, 2 January 2022

The end of year dash to the securitization finish line

Companies raised a combined total of nearly EGP 1.75 bn in three securitizations last week as the securitized bond market saw a flurry of activity to close out the year.

By our count, this brings the total number of securitized bond issuances that went to market last year to 19, with a combined value of EGP 15.8 bn. We expect a few more issuances to close soon, as the Financial Regulatory Authority said late last month (pdf) it would approve 11 sales worth a combined EGP 11.5 bn before the end of 2021.

EFG Hermes Corp Solutions closed its first EGP 790 mn securitized bond issuance last week, part of a wider EGP 3 bn program, EFG Hermes said in a statement (pdf) on Thursday. The issuance is backed by a EGP 815.1 mn receivables portfolio covering 47 lease contracts. EFG Hermes was the sole financial advisor, sole transaction manager and book runner, underwriter, and sole arranger on the issuance.

Pioneers Properties closes EGP 627.5 mn securitized bond issuance: EFG Hermes was also the sole financial advisor, sole transaction manager and book runner, underwriter, and sole arranger on a EGP 627.5 mn securitized bond issuance on behalf of Pioneers Properties for Urban Development on Thursday, according to a statement (pdf). The issuance, which was the first tranche of Pioneers’ EGP 3 bn bond program, is backed by a EGP 798.3 mn receivables portfolio, the statement notes.

Rawaj Consumer Finance also closed a EGP 305.5 mn securitized bond issuance, according to a press release (pdf) on Thursday. The issuance is backed by account receivables from Tawriq for Securitization. Misr Capital was sole financial advisor, bookrunner, arranger, and general coordinator for the transaction. Misr Capital, Banque Misr, National Bank of Egypt, and Arab African International Bank acted as underwriters for the issuance. Dreny & Partners acted as legal advisors and Ernst & Young as auditor.

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.

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