Egypt’s FRA nods to three issues of securitisation bonds

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Cairo – Egypt’s Financial Regulatory Authority (FRA) approved on Saturday, 1 October 2022 three issuances of securitisation bonds valued at EGP 23 billion distributed among three companies, Akhbar El-Yom reported.

The first issuance, valued at EGP 20 billion, is the largest so far. It is also the seventh issuance of Tameer Securitisation issued in exchange for financial rights and deferred dues for a real estate portfolio transferred from the New Urban Communities Authority (NUCA).

The FRA further greenlighted the second issuance of the first programme for a securitisation company in exchange for a real estate financing portfolio transferred from a real estate financing company at EGP 1.59 billion.

Additionally, it approved the second issuance of the first programme of Global Corp for Securitisation in exchange for a financing lease portfolio transferred from Global Corp for Financial Services at EGP 1.28 billion.

The recent period has seen a rising demand by public economic entities operating in various activities to diversify the sources of funding for their expansions to raise the efficiency of their operations. This is evidenced by the steady hikes in the values of securitisation bonds and Sukuk issuances, as well as other funding forms provided by non-banking financial markets.

Year-to-date (YTD), total values of bond issuances approved by the FRA amount to EGP 36 billion.