Similar to a previous offering in November 2019, the EGP 562 million securitized bond issuance is underlined by receivables from 3 of Raya Holding’s subsidiaries including Raya Electronics, Aman Financial Services, and Aman Microfinance. The receivables consist of installments for consumer loans for electronics and home appliances and micro loans for small enterprises.
The Commercial International Bank – Egypt acted as the lead underwriter and sole lead arranger for the bond issuance. The highly granular bond offering consists of four tranches with varying maturities from 6 months and up to 36 months from the subscription date with a weighted average yield of 10.78%.
The first tranche represents 33.7% of the issuance with a yield of 10.53% and a six months maturity. The second tranche accounts for 25% of the issuance with a yield of 10.68% and a nine months maturity. The third and fourth tranches amount to 28.5% and 12.8% of the issuance with yields of 10.73% and 11.73% respectively, and 12 and 36 months to maturity. The bond offering was nearly 300% covered through the following institutional investors: CIB, NBE, Banque Misr, Misr Capital, Attijariwafa Bank - Egypt, and Suez Canal Bank.
The securitized bond issuance includes contracts with nearly 124 thousand customers across all three originating companies underlined by nearly 800 thousand commercial papers.
Raya posted a consolidated net loss of EGP 73,259,360 in Quarter one (Q1) of 2020, a 69% increase from EGP 43,343,528 incurred in the prior-year period.
Nevertheless, standalone net profit reached EGP 61,091,939 in Q1 2020, compared to EGP 61,106,738 posted in Q1 2019.
Established in 1999 and listed on EGX in 2005, Raya operates within the software and services sector, focusing on information technology consulting and other services. It has subsidiaries operating across North America, the British Islands, Northern Africa, Western Africa, and the Middle East.
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