United Finance jumps on the securitization bandwagon: United Bank’s financing arm United Finance raised EGP 617.5 mn in a securitized bond issuance, the transaction’s financial advisor Al Ahly Pharos said in a statement (pdf) yesterday. Al Ahly Pharos Investment Banking, the investment banking arm of the National Bank of Egypt’s Al Ahly Capital Holding, said that the bond was backed by a EGP 993 mn portfolio of leasing contracts.

DATA POINT- Egyptian companies have issued more than EGP 61.2 bn of securitized bonds so far this year, according to data tracked by Enterprise. That’s almost 35% more than what was taken to market across the whole of 2022 and more than three times the volumes in 2021.

The details: The United Finance bond was split into three tranches rated AA+, AA, and A by the Middle East Rating Services (MERIS).

The buyers: Al Ahly Pharos, the National Bank of Egypt, Banque du Caire (BdC), and Arab African International Bank (AAIB) acted as underwriters on the transaction.

Advisors: Al Ahly Pharos was the lead manager and arranger on the transaction, while AAIB acted as the custodian and BdC as placement agent. Dreny & Partners as legal advisor, and Baker Tilly Egypt as the transaction’s auditor.

Tags: