Egypt’s market for securitized bond issuances continues to be red-hot, with three fresh issuances worth  more than EGP 2.8 bn closing in recent days.

DATA POINT- The three transactions bring the total value of securitized bonds issued in Egypt so far this year to more than EGP 54.5 bn — more than 20% than was taken to market in FY 2022, according to data tracked by Enterprise.

#1- EFG Corp-Solutions closed an EGP 1.01 bn securitized bond issuance last week, according to a statement (pdf) . The issuance is the third in the leasing and factoring firm’s ongoing securitization program, and includes three tranches with ratings of Prime1, A+, and A+ from the Middle East Ratings and Investor Service (MERIS).

This is the company’s first issuance in 2023: The last time the EFG Holding subsidiary took to the debt markets was in September 2022 when it closed a EGP 2 bn issuance.

Who subscribed? EFG Hermes and Arab African International Bank (AAIB) were underwriters. Arab Banking Corporation (ABC) and Al Ahli Bank of Kuwait also subscribed to the issuance.

Advisors: EFG Hermes acted as the financial advisor and lead arranger on the transaction (as it has on some EGP 5.5 bn worth of issuances of late), AAIB as bookrunner and custodian, while KPMG acted as auditor. Dreny & Partners was the legal advisor.

#2- Halan, the consumer finance subsidiary of MNT-Halan , has issued EGP 1.04 bn worth of securitized bonds, according to Al Borsa. The issuance featured four tranches rated P1 and A, and was reportedly 1.5x oversubscribed. Buyers included major banks and investment funds, according to the newspaper.

Two down, one to go: This is the second issuance of a EGP 3 bn program, CIB’s debt capital market head Menan Awadallah told the newspaper. The company closed the first, EGP 978 mn issuance in December.

More to come: MNT-Halan’s microfinance subsidiary, Tasaheel, has securitized bns of EGP of its portfolio over the past year as part of a EGP 13 bn program. The company has sold more than EGP 8.8 bn of securitized bonds since June 2022 across three issuances, and expects to issue the remainder before the end of 2023.

Advisors: CIB acted as financial advisor, lead arranger and custodian, Matouk Bassiouny & Hennawy provided counsel, and KPMG was the auditor.

#3- Rawasi turns to the securitization market: Real estate investor Raw asi Urban Develop ment has closed a EGP 789 mn securitized bond issuance, according to a statement (pdf) yesterday from Al Ahly Pharos, which led the transaction. The issuance is backed by a EGP 1.3 bn portfolio of leasing receivables, and was sold in three tranches rated P1, AA and A by Middle East Ratings and Investors Service (MERIS).

Remember: Rawasi is a joint venture established in 2021 by the National Bank of Egypt (NBE) and Banque Misr to invest in real estate. The company has a partnership with Talaat Moustafa Group under which it buys out the developers assets.

Who subscribed? The bond was fully covered by the NBE, Arab African International Bank (AAIB), Al Ahli Bank of Kuwait, Al Baraka Bank and MIDBank.

Advisors: Al Ahly Pharos acted as financial advisor and lead arranger for the transaction. It was also one of the underwriters alongside NBE and AAIB. AAIB was custodian and placement agent. Dreny & Partners provided legal counsel, while RSM Egypt (Magdy Hashish) Egypt was the auditor.

Tags: