There’s plenty more news from the nation’s red-hot securitization market, which has now seen the value of bonds taken to the market rise more than a third compared to the same time last year.

UP FIRST- CI Capital has closed an EGP 3 bn securitized bond issuance for MNT-Halan’s microfinance subsidiary Tasaheel Finance, CI said in a statement (pdf). The four tranches of the issuance were rated Prime 1, A+ and A by the Middle East Ratings and Investor Services (MERIS) rating agency.

There could be more to come soon: The issuance is the fourth in a three year, EGP 13 bn program that Tasaheel kicked off in June 2022 with an EGP 2.6 bn issuance, followed by an EGP 2.7 bn issuance in January, and an EGP 3.3 bn issuance in July. The company could sell another EGP 1.3 bn of securities before the year is out, according to targets announced in July.

The debt market is booming right now, particularly in non-bank financial services, with securitization being a good tell “for companies to maintain their capital adequacy ratio within limits set by the Financial Regulatory Authority, as well as utilize issuance proceeds to reinforce the company's financial position, maximize profitability, and return on equity while using them as a hedge against inflation,” said Amr Helal, CEO for the sell side at CI Capital’s investment banking unit.

Advisors:CI Capital acted as the sole financial adviser, issuance manager, and lead arranger. Matouk Bassiouny & Hennawy acted as the legal advisor and KPMG-Hazem Hassan Consulting was the auditor.

DATA POINT- Egyptian companies have issued more than EGP 60.6 bn of securitized bonds so far this year, according to data tracked by Enterprise — 33% more than what was taken to market across the whole of 2022.

NUCA READIES NEXT ISSUANCE-

ALSO- Another huge issuance for NUCA? The New Urban Communities Authority (NUCA) is reportedly waiting on the Financial Regulatory Authority’s (FRA) approval and a credit rating report from MERIS before it goes ahead with another EGP15 bn issuance, Al Mal reports, citing sources it says are in the know. NUCA is hoping to start the issuance within weeks, according to the local media outlet, and use the fresh funds for infrastructure works for new cities under construction.

Remember: NUCA in July closed an EGP 15 bn issuance, the largest in Egypt so far this year and the first of a EGP 30 bn program.

Advisors:Al Ahly Pharos, CI Capital, and CIB are reportedly set to promote and manage the issuance. Dreny & Partners will act as counsel, and Baker Tilly as financial advisor. Alawwal Bank will act as custodian, while the National Bank of Egypt, Banque Misr, and Banque du Caire are expected to act as underwriters.

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