Egypt: CI Capital concludes securitised bond issuance of $971mln for Tasaheel Finance

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Egypt - CI Capital, the diversified financial services group, announced today the conclusion of a securitized bond issuance of EGP 3.035bn for Capital for Securitization, on behalf of Tasaheel Finance, who acted as the originator of the portfolio.

The issuance consists of four tranches with different ratings, values and tenors. The first tranche, valued at EGP 952mn, has a tenor of six months and received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS), the highest rating possible. The second tran consist of EGP 506mn with a tenor of nine months and also received a Prime 1 rating. The third tranche, valued at EGP 541mn, has a tenor of 13 months and received an A+ rating, while the fourth tranche, valued at EGP 1.036bn, has a tenor of 34 months and received an A rating.

“The Egyptian debt market is picking up pace across various sectors, especially the non-banking financial services sector, as debt issuances are regarded as the ideal tool for companies to maintain their capital adequacy ratio within the limits set by the FRA, as well as to use the issuance proceeds to strengthen their financial position, maximize profitability and return on equity, and hedge against inflation. This transaction brings CI Capital’s total concluded transactions to fourteen spanning ECM, DCM, and M&A spaces, with an aggregated value exceeding EGP 38bn,” stated Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital.

“This issuance adds to CI Capital’s track record, reinforcing its position as the partner of choice for several leading companies operating in non-banking financial services, a sector often referred to as one of the most prominent sectors contributing to the development of the Egyptian economy. Tasaheel is one of the biggest players that promotes financial inclusion and works on integrating micro, small, and medium enterprises into the formal economy. CI Capital’s 12 transactions in the debt capital market space since the beginning of the year, with an aggregate value of EGP 31.387bn, represent 42% of the total non-sovereign debt issuances in the Egyptian market since the beginning of this year,” commented Mohamed Abbas, Head of DCM at CI Capital.

CI Capital acted as sole financial adviser, issuance manager, and lead arranger in the issuance. Matouk Bassiouny & Hennawy acted as the legal advisor and KPMG- Hazem Hassan Consulting acted as the issue’s financial auditor.