Fawry MSME Finance closed its maiden securitized bond issuance, raising EGP 497.5 mn, as part of a wider securitization program, the parent company said in a press release (pdf). The 13-month, single-tranche bond was rated A- by Middle East Ratings and Investor Services (MERIS) and is backed by a securitized portfolio of receivables. There’s no publicly available information about the size of the program or the timeline of future issuances under it.

The rationale: The move comes as the Fawry unit looks to diversify funding and meet rising credit demand. “This securitization is a strategic step in our mission to scale our lending operations and provide greater access to finance for MSMEs across Egypt,” Fawry MSME Finance CEO Alexander Levchenko said.

Investor confidence ran high: Levchenko added that “strong investor appetite” for the firm’s first-ever securitized bond reflects market confidence in its lending model, portfolio quality, and the broader growth prospects of the domestic MSME sector.

ICYMI- Fawry is casting a wider net: The Financial Regulatory Authority granted Fawry MSME Finance an Islamic financing license back in March, opening the door for it to offer shariah-compliant finance that is “tailored to the growing demand for Islamic finance in Egypt.”

ADVISORS- CI Capital served as financial advisor, arranger, issuance manager, and bookrunner on the transaction.

Market reax: Fawry’s share price rose 0.89% yesterday to close at EGP 11.51.

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