|15 September, 2019

AAIB arranges $367mln securitised bonds, Egypt’s biggest transaction in 2019

This transaction was done in collaboration with the National Bank of Egypt, the Commercial International Bank, and EFG Hermes

Image used for illustrative purpose. An employee counts money at a bank in Cairo February 20, 2011.

Image used for illustrative purpose. An employee counts money at a bank in Cairo February 20, 2011.

REUTERS/Suhaib Salem

The Arab African International Bank (AAIB) has been on the frontline of a securitisation transaction worth EGP 6bn as an advisor and lead advisor. This momentous transaction has been issued by the Tameer for Securitization Company for a portfolio of receivables originated by the New Urban Communities Authority. 

Noteworthy, this has been the biggest securitisation in the local debt capital market thus far. The AAIB has been one of the lead arrangers of this milestone transaction, the signing of which was finalised in July 2019, with a share of EGP 2bn. This transaction was done in collaboration with the National Bank of Egypt, the Commercial International Bank, and EFG Hermes.

A securitisation transaction is a debt capital market financial instrument whereby future receivables are converted into financial securities which can then be listed and traded on the stock exchange.

The Vice Chairperson and Managing Director of AAIB, Sherif Elwy, stated that “securitisation transactions are vital financial tools as they allow the diversification of financing sources for a certain tier of clients including real estate developers and consumer finance companies amongst others.”

© 2019 Daily News Egypt. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Markets