Future flow securitization has officially arrived: The Financial Regulatory Authority (FRA) has issued its regulations for future flow securitization, the regulator said in a statement (pdf), paving the way for the country’s first issuance.

This opens the door to our first future flow securitization issuance, courtesy of CIRA: EGX-listed private sector education outfit CIRA in July became the first company to receive approval from the FRA to take a EGP 2 bn future flow securitized bond program to market. Amendments to the Capital Markets Act that introduce future flow securitization were signed into law in March, after the FRA approved the instruments for use in May 2021.

It’s good news for public-sector projects, too: Public agencies will be able to use future flow issuances to raise funds for new projects and to improve existing services without depleting state coffers, FRA chief Mohamed Farid said in the statement. He singled out utilities including water, electricity, gas, and recycling, national railway and subway projects, and the telecoms sector as among those well placed to take advantage of future flow issuances.

Missed our explainer on future flow? Future flow securitization differs from traditional securitization in that it allows the securitization of payments that aren’t yet on the company’s balance sheet, giving companies access to liquidity without needing a big portfolio of accounts receivables (think: home and car financing, leasing portfolios and the like). Future income — whether from club memberships, phone bills, utility payments, tuition fees or rents — is packaged into securities and offered to investors in order to raise capital. Tap or click here to check out our full explainer.

FAWRY EYES BNPL MARKET-

E-payments giant Fawry is planning to launch its consumer finance business in 1Q 2023, Chief Investor Relations Officer Hassan Abdel Gelil told Enterprise. Fawry has earmarked around EGP 400 mn from the proceeds of a recent EGP 800 mn capital increase to tap the consumer finance market with its new buy-now-pay-later (BNPL) platform, Abdel Gelil told us. The EGX-listed company had previously said it would launch Fawry Consumer Finance in 2022.