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Sunday, 2 October 2022

Record EGP 20 bn issuance tops wave of securitizations, bringing YTD total to >2x last year

Last week was a big one for the securitized bond market. A blockbuster EGP 20 bn issuance by the New Urban Communities Authority’s (NUCA) Al Taamir headed up a string of securitizations last week, as an already hot market gets hotter.

Last week’s issuances more than double the total value of securitized bonds brought to market so far this year to some EGP 42 bn, according to data tracked by Enterprise. That dwarfs the EGP 15.8 bn taken to market during the whole of 2021.

FIRST UP- NUCA closes biggest ever securitized bond issuance: Al Taamir — a special purpose vehicle owned by the government’s New Urban Communities Authority — closed its EGP 20 bn securitized bond issuance after the Financial Regulatory Authority (FRA) approved (pdf) the move, according to Amwal El Ghad.

NUCA broke its own record for the market’s largest securitization: The authority closed an EGP 10 bn issuance in 2020. The proceeds were earmarked to finance the development of new urban areas including the new administrative capital and New Alamein.

Advisors- Dreny & Partners acted as legal counsel to NUCA on the issuance.

PLUS- EFG Hermes Corp-Solutions closed an EGP 2.0 bn securitized bond issuance on Thursday, EFG Hermes’ investment banking division said in a statement (pdf). This is the second securitization issuance for the leasing and factoring player, which executed a EGP 790 mn bond sale in December.

Advisors: EFG Hermes was the sole financial advisor, transaction manager, bookrunner, underwriter, and arranger on the issuance. Dreny & Partners acted as legal advisor and KPMG audited the issuance.

AND- Tamweel Mortgage Finance closed an EGP 1.6 bn issuance, financial advisor CI Capital said in a statement (pdf). The issuance marks the second tranche of Tamweel’s debut EGP 3 bn securitized bond program, the FRA said.

Advisors- CI Capital acted as financial advisor, issuance manager, and lead arranger for the issuance.

LAST, BUT NOT LEAST- GlobalCorp issued EGP 1.3 bn in securitized bonds — the second tranche of its EGP 5 bn securitized bond program, the non-bank lender said in a press release (pdf). The group in December issued the first EGP 985 mn tranche of the program, which is set to wrap next year.

Advisors- CI Capital acted as financial advisor, issuance manager, and lead arranger. CIB also acted as financial advisor, while Dreny & Partners were legal counsel and KPMG were auditors.

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