Contact Financial Holding has issued EGP 1.86 bn in securitized bonds for its consumer finance business, according to a press release(pdf). The three-tranche issuance is backed by a EGP 3 bn portfolio and has tenors ranging from 13 to 61 months and ratings of AA+, AA and A from the Middle East Ratings & Investors Service (MERIS).

Who bought in: Unspecified banking and non-banking financial institutions, the statement said, without providing details. The statement also did not disclose the names of the advisors involved in the issuance.

Contact has two big issuances this year so far: The company is plowing forward with its EGP 10 bn securitization program, which it kicked off in November with an EGP 1.1 bn issuance. It followed that up with an EGP 1.9bn issuance in April.

Expect more: Contact has just over half of the EGP 10 bn program still to issue and plans to wrap it up by the end of this year, according to the statement.

Securitization is hot this year: Companies have now issued some EGP 19.6 bn of securitized bonds so far this year, up nearly 61% from the same period last year.

Advisors: ALC Alieldean Weshahi and Partners acted as legal advisors in the issuance.

Correction on 26 June 2023: A previous version of the story incorrectly stated that Contact Financial has the biggest issuance for securtized bonds this year. The biggest securitized bond issuance in Egypt since the beggining of this year is for MNT-Halan in February. 

Tags: