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Thursday, 2 June 2022

AT Lease closes EGP 1.6 bn securitization

Shari’ah-compliant leasing company AT Lease has closed its third securitized bond issuance worth EGP 1.6 bn, backed by a receivables portfolio of around EGP 2 bn, a source at the company confirmed to Enterprise, after the company released a statement (pdf).

The firm’s leasing portfolio currently stands at EGP 4 bn, the source said. The company hopes to issue securitized bonds annually, depending on the size of its portfolio, they added.

Who bought in? Banque Misr, NBE, Attijariwafa Bank, Banque du Caire, AAIB, Al Baraka Bank, Ahli United Bank, and the Industrial Development Bank.

Advisors: Misr Capital and Al Ahly Pharos were co-lead managers, financial advisors, and underwriters for the transaction. Its parent Banque Misr acted as arranger, co-underwriter, and custodian. Our friends at ALC Alieldean Weshahi & Partners acted as legal counsel, while Baker Tilly Hilal & Abdel Ghaffar was the auditor.

With AT Lease’s offering included, Egyptian issuers have now sold around EGP 10.8 bn worth of securitized bonds since the start of 2022, by our count. That’s more than two-thirds of the total value of EGP 15.8 bn taken to market last year.

MORE SECURITIZATION IN THE WORKS?- Al Ahly Mortgage Finance could securitize EGP 1 bn of its portfolio this year, Al Mal quoted managing director Hatem Amer as saying. The NBE subsidiary is reportedly in talks with several firms to provide financial and legal advice for the issuance.

EDITOR’S NOTE- Corrected on 2 June to identify Al Ahly Pharos as a co-lead manager, financial advisor, and underwriter.

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