Non-banking financial services firm GlobalCorp has closed a EGP 2.54 bn issuance of securitized bonds, it said in a statement (pdf) yesterday. The bonds were divided into three tranches rated AA+, AA, A by Middle East Rating & Investors Service (MERIS).

This is part of a wider program: GlobalCorp has so far securitized more than EGP 5.9 bn of its portfolio over the past two years. The company plans to eventually sell EGP 10 bn worth of securitized bonds in the ongoing program. This is the company’s first sale since December when it closed a EGP 1.1 bn issuance.

Where the money’s going: The proceeds will be used to finance GlobalCorp’s local expansion plans, said the group’s CEO and MD, Hatem Samir. The group is looking at opening a new office in the Gulf region, he said, without providing further details.

Advisors: Al Ahly Pharos, CIB, CI Capital and Arab African International Bank (AAIB), acted as joint financial advisors, while Al Ahly Pharos and CIB also acted as joint lead arrangers, transaction managers, book runners, and underwriters of the issuance. Dreny and Partners acted as legal advisor, while KPMG acted as an auditor.

There was strong demand from local and international banks: AAIB, the National Bank of Egypt, CIB, Attijariwafa, Bank ABC, SAIB, Al Baraka Bank and EBank all subscribed to the issuance.

DATA POINT- Companies have now issued EGP 48.6 bn of securitized bonds so far this year, according to data tracked by Enterprise. This is more than total volumes across the whole of 2022.

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