{"id":558937,"date":"2021-01-03T03:45:17","date_gmt":"2021-01-03T03:45:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/securitized-bonds-galore\/"},"modified":"2021-01-03T03:45:17","modified_gmt":"2021-01-03T03:45:17","slug":"securitized-bonds-galore","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/01\/03\/securitized-bonds-galore\/","title":{"rendered":"Securitized bonds galore"},"content":{"rendered":"

<\/a> CI Capital\u2019s Corplease has closed a EGP 2.7 bn securitized bond issuance<\/strong>, the largest of its kind by a private sector company, investment bank Misr Capital said in a statement (pdf)<\/a> over the weekend. The four-tranche sale was backed by EGP 3.4 bn in receivables from leasing contracts. The bonds pay out floating coupon rates that vary with the central bank\u2019s overnight rate. Corplease, one of Egypt\u2019s largest leasing companies, had completed a similar EGP 2.2 bn bond issuance<\/a> roughly around the same time last year. Its latest sale comes as the securitized bond market has heated up amid the pandemic<\/a>.<\/p>\n

Who bought in?<\/strong> Banque Misr, Banque du Caire, Suez Canal Bank, Ahli United Bank, Abu Dhabi Commercial Bank, Bank ABC and the United Bank all got a piece of the issuance.<\/p>\n

Advisors: <\/strong>Misr Capital acted as the financial advisor, lead manager, and underwriter. Its parent Banque Misr was an arranger, co-underwriter, and custodian. CI Capital acted as an arranger for Corplease, while Suez Canal Bank and Banque du Caire were co-underwriters. Law firm Zaki Hashem & Partners acted as counsel.<\/p>\n

Who else sold securitized bonds? GB Auto subsidiary GB Lease took to market EGP 2 bn of bonds<\/strong> backed by EGP 2.7 bn in leasing receivables, Misr Capital said in a separate statement (pdf)<\/a>. The sale included three tranches, and also carried yields tied to the overnight lending rate.<\/p>\n

Advisors: <\/strong>Banque Misr acted as arranger and underwriter, while Misr Capital was financial advisor, lead manager, and underwriter. BdC and Suez Canal Bank were co-underwriters. Dreny and Partners Law Firm provided advice.<\/p>\n

CORRECTION- 3 January 2021: <\/em>A previous version of this story incorrectly stated the roles of some advisors.<\/em><\/p>\n

Drive Finance, also a GB Auto portfolio company, closed a triple-tranche EGP 892 <\/strong>mn<\/strong> securitized bond issuance<\/strong>, the proceeds of which will be used to trim its debt and expand in the market, the company announced (pdf)<\/a> on Thursday. The bond tranches are divided as follows: A EGP 414.8 mn tranche with a 13-month tenor and AA+ rating; a EGP 407.6 mn tranche with a 36-month maturity and AA rating; and a third tranche worth EGP 69.6 mn carrying a 48-month tenory and rated A. The Middle East Credit Rating and Investors Services (Meris) rated the issuance.<\/p>\n

Advisors: <\/strong>CIB acted as primary lead manager, arranger, and underwriter, and Dreny and Partners Law Firm as counsel.<\/p>\n

Mortgage lender <\/strong>Qasatli<\/strong> issued securitized bonds worth <\/strong>EGP 700 mn last week<\/strong>, Managing Director Mohamed Youssef has said<\/a>. The issuance is part of a larger plan to sell EGP 6 bn of asset-backed securities over the next few years.<\/p>\n

Advisors: <\/strong>Qasatli signed a five-year securitization bond issuance contract with EFG Hermes to act as the sole financial advisor for issuances. Dreny and Partners Law Firm are acting as counsel.<\/p>\n

Four subsidiaries of Amer Group Holding will sell EGP 607 mn of securitized <\/strong>bonds in a triple-tranche issuance<\/strong> after tapping the Financial Group for Securitization to manage the issuance, according to a bourse filing (pdf)<\/a>. The three tranches were rated AA+, AA, and A by Meris. The issuance will go to market once the necessary procedures and approvals are obtained, the company said without specifying a timeframe.<\/p>\n

OTHER DEBT NEWS- The European Investment Bank (EIB) is providing Banque <\/strong>Misr with a EUR 425 mn credit line to support Egyptian SMEs and mid-cap firms<\/strong> that have been impacted by the pandemic by financing investment projects and working capital needs, it said in a statement<\/a>. The initiative aims to boost private sector growth and employment in the country. The financing comes as part of the EIB contribution to the so-called Team Europe<\/a> response to the covid-19 crisis that was launched last April to aid EU partner countries.<\/p>\n

WHO\u2019S IN THE MARKET FOR DEBT?<\/strong><\/p>\n