CIRA Education wraps up second future flow securitization: EGX-listed education provider CIRA Education has closed its second future flow issuance worth EGP 700 mn, financial advisor EFG Hermes said in a press release (pdf) this morning. This is the second issuance of a larger EGP 2 bn program, and follows the company’s maiden EGP 800 mn issuance in November last year.

The issuance will support CIRA’s expansion plans:The funds raised from the issuance will be used to cover CIRA’s growth plans in the next three years, including expanding its university and K-12 offering, CEO Mohamed El Kalla previously told us.

SOUND SMART- Unlike traditional securitization, future flow allows the securitization of payments that aren’t yet on the company’s balance sheet, giving companies access to liquidity without needing a big portfolio of accounts receivables. Future income — whether from club memberships, phone bills, utility payments, tuition fees or rents — is packaged into securities and offered to investors in order to raise capital. We have a full explainer here.

Advisors: EFG Hermes led the transaction, and was underwriter along with the Arab African International Bank, Al Baraka Bank (also subscriber to the issuance), Suez Bank, and Banque Misr. Zulficar & Partners provided counsel, AAIB was the custodian, and PwC was the auditor.

DATA POINT- The year in securitization (so far): The issuancebrings the total value of securitized bonds brought to market so far this year to some EGP 57.6 bn, according to data tracked by Enterprise.

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