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Wednesday, 5 January 2022

GB Leases returns to securitization market with EGP 4.3 bn sale

GB Lease has completed the sale of EGP 4.3 bn of securitized bonds to investors, according to a statement (pdf) from CIB, which worked on the transaction. The leasing arm of GB Auto sold the securities in two separate issuances with tranches rated A through AA+. Abu Dhabi Commercial Bank was the sole subscriber to both issuances, which were backed by leasing receivables.

This is the company’s first issuance in a year: The last time GB Lease went to the securitization market was last January when it sold EGP 2 bn of asset-backed securities.

Advisors: CIB, Banque du Caire and the Suez Canal Bank acted as joint arrangers, underwriters, and financial advisors on a EGP 1.65 bn sale, while CIB, AAIB, Banque du Caire, and Al Ahly Bank of Kuwait worked on the second, EGP 2.65 bn issuance. Law firm Dreny and Partners provided counsel, while Sherif Dabbous was the auditor.

MEANWHILE-

Premium Card closed an EGP 170 mn short-term securitized bond sale, financial advisor EFG Hermes announced (pdf) yesterday. The issuance consists of a single ten-month tranche, and is part of a two-year, EGP 2 bn securitization program Premium Card launched last year. The bonds received a Prime 1 rating from rating service MERIS.

Advisors: EFG Hermes was the sole financial advisor, sole transaction manager, book-runner, underwriter and arranger for the offering.

2022 SO FAR-

The two sales bring the total value of securitized bonds sold since the start of the new year to almost EGP 6.9 bn, by our count. CI Capital’s leasing arm Corplease kicked off the year with a four-tranche, EGP 2.4 bn issuance earlier this week. A total of 19 securitized bond issuances with a combined value of EGP 15.8 bn went to market last year, according to our figures. Three of those issuances, together worth nearly EGP 1.75 bn, took place last week as the market saw a flurry of activity to close out 2021.

In the pipeline: Cairo Housing and Development’s maiden issuance to the tune of EGP 146 mn, while its sister companies are slated to take a EGP 190 mn issuance to market after receiving regulatory approval.

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