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Wednesday, 12 January 2022

And the securitized bonds just keep on comin’

Madinet Nasr Housing and Development (MNHD) has closed its first EGP 300 mn issuance as part of a three-year, EGP 3 bn securitization program, according to a statement (pdf). The bond is backed by a receivables portfolio of EGP 373.9 mn and consists of three fixed-interest tranches rated A through AA+. This is the first issuance from MNHD since 2019, when the company issued EGP 370.5 mn in securitized bonds. The company had signed an EGP 750 mn sale and leaseback agreement with EFG Hermes in December, which will include a few securitization issuances as follow-on transactions.

Advisors: Our friends at EFG Hermes acted as sole financial adviser, transaction manager, book-runner, arranger and co-underwriter on the issuance. CIB also acted as an underwriter and custodian.

This is the latest in a string of corporate paper to hit the market, with some EGP 7.2 bn in securitized bonds issued so far this year. GB Lease completed the sale of EGP 4.3 bn of securitized bonds last week after CI Capital’s leasing arm Corplease kicked off the year with an EGP 2.4 bn issuance. Premium Card also closed a EGP 170 mn short-term securitized bond sale. A total of 19 securitized bond issuances with a combined value of EGP 15.8 bn went to market last year, by our count.

And there’s more to come: Al Oula is looking to issue EGP 900 mn in securitized bonds in 1H2022, Al Mal quotes MD and Vice Chair Ayman Abdel Hamid as saying. Al Oula is currently in the process of appointing advisors for the issuance.

Also in the pipeline: The Financial Regulatory Authority has okayed issuances by Cairo Housing and Development and its subsidiaries worth a combined EGP 336 mn. Premium Card is also looking to tap the securitized bond market again this year with a two-tranche, EGP 500 mn issuance.

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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