Contact is off to the (securitization) races: Non-banking financial services firm Contact Financial has closed an EGP 1.04 bn securitized bond issuance, its first in 2024, the company said in a statement (pdf). The bonds were issued by Contact’s Sarwa Securitization and backed by a Contact Credit portfolio.

The issuance featured three tranches that were rated AA+, AA, and A by the Middle East Rating Services.

The buyers: The issuance was subscribed to by Al Ahli Bank of Kuwait – Egypt in addition to several unspecified “money market funds”. Contact along with Arab African International Bank (AAIB), Banque du Caire, CI Capital, and Al Ahly Pharos were underwriters.

What they said: “We have successfully completed our new securitization bonds issuance, despite significant economic challenges, notably the recent interest rate hike by the Central Bank of Egypt in March,” Contact Financial CEO Said Zater said. “It also reflects the confidence of local and global financial institutions in the strength of our credit portfolio, the diversity of our financial instruments and the competence of our team,” he added.

That’s not all: Contact is also “on track” to complete a new sukuk issuance during 2Q 2024, according to the statement.

Data Point: Companies have raised almost EGP 8 bn from securitization so far this year, that’s58% less compared to the same period last year, according to data tracked by Enterprise.

ADVISORS- Contact served as issuance manager and promoter of the issuance. AAIB served as custodian, Banque du Caire was the placement agent, while our very good friends at ALC Alieldean Weshahi & Partners were legal counsel, and KPMG served as the issuance’s auditor.

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