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Wednesday, 11 January 2023

BTECH kicks off EGP 5 bn securitization program

BTECH has closed an EGP 1.038 bn securitized bond issuance, according to a joint statement (pdf) from BTECH and CIB, which was the exclusive financial advisor on the transaction, as well as issuance manager, general arranger, promoter, and co-underwriter.

The details: The three-tranche issuance is the first in a short-term EGP 5 bn program that the company is rolling out over two years. The three tranches were rated P1 by Middle East Rating & Investors Services, the statement said.

Where the money’s going: The proceeds will be put towards BTECH’s growth plans, the statement said, without elaborating.

Also working on the transaction: CIB and the National Bank of Egypt served as the transaction custodians, Zulficar & Partners Law Firm was counsel and KPMG was the auditor.

The most recent undertaking after a bumper year for securitization: The securitization market saw issuances worth a combined EGP 51.2 bn in 2022, more than three times the EGP 15.8 bn sold the year prior, according to data tracked by Enterprise.

Under new ownership: Saudi Arabia sovereign wealth fund PIF last year acquired a 34% stake in the company for an undisclosed amount. We sat down with BTECH CEO Mahmoud Khattab at the time to talk about how far BTECH has come and the strategy moving forward.

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