TE could get in on future flows
Telecom Egypt is looking at future flow securities as a potential debt tool to help fund its expansions and investments, a source close to the matter confirmed to Enterprise. The company is considering future flows along with other types of securities, and has yet to decide on the value of bonds it wants to issue or the timeline of the potential issuances, they said. The company is also looking at ways to increase its USD-denominated revenues as a way to mitigate the impacts of the EGP’s devaluation, they added.
Future flows are: Securities backed by off-balance sheet assets (think phone and utility bill payments, sporting club membership fees, rent, and toll gate payments.) They give companies access to liquidity without needing a big portfolio of accounts receivables Tap or click here to check out our full explainer on the newly introduced securities.
REMEMBER- EGX-listed education provider CIRA Education became the first firm to kick off a future flow issuance with a EGP 800 mn issuance last year, as part of a larger EGP 2 bn future flow securitized bond program. The government has also reportedly been considering issuing future flows for utility firms in the water, electricity and gas sectors, while Contact Financial Holding is in talks with the FRA to securitize future flows on behalf of “one of the largest.