“Our asset-backed short-term bond received a Prime 1 rating from the Middle East Ratings and Investor Service (MERIS), which makes it highest rated bond in the Egyptian market.” added Paul.
MERIS stated that the bond issue is backed by a portfolio of consumer card receivables composed under strict underwriting and servicing standards and procedures. MERIS also stated that Premium Card has built up a significant experience over the past 15 years and that their efficiency of operations is supported by a highly automated operating system.
Rami Antaki, co-founder and board member of Premium Card commenting on the issuing: “ The proceeds from the transaction will be invested in solidifying our position in the Non-Banking Financial Services (NBFS) sector by backing up our ambitious expansion strategy for 2020-21, expanding into a number of new highly regarded Financial Technology (FinTech) projects we have in the pipe-line”.
“Over the past years, we have been successful in fostering, a strong and successful business relationship with the Arab African International Bank (AAIB), as a result of mutual understanding and their confidence in Premium Card’s resilient business model. We are looking forward to reinforce this robust partnership by joining forces in a series of successful endeavors which should be engaged in Q3 of this year.” added Rami.
A consortium of the leading financial, banking and legal institutions collaborated jointly on this second short-term securitization transaction. Arab African International Bank (AAIB) and EFG-Hermes were both tapped as lead arrangers and co-underwriters. In addition, EFG-Hermes was tapped as sole financial advisor, book-runner and transaction manager, while AAIB acted as placement agent and custodian of the transaction. Dreny & Partners acted as the legal advisor, and KPMG Hazem Hassan as financial auditor for the transaction.
About Premium Card
Premium International for Credit Services (Premium Card) is a credit card issuer operating in Egypt since 2002 and a pioneer in the consumer finance market, introducing the first zero interest credit card with a 10-month instalment program.
Premium Card aims at empowering consumers by enhancing their purchasing power through their cards, as cardholders can enjoy shopping in store or online at a large network of more than five thousand stores across Cairo, Alexandria and Mansoura. With their cards, cardholders gain access to more than 20 different sectors, including electronics, fashion, electrical appliances, tourism, travel services, food, etc.
Premium Card has reached a customer base of 130 thousand cardholders that are growing with a monthly average of four thousand cards, sourced through 800+ of major Egyptian corporates among both the private and public sectors.
Driven by buoyant consumer market dynamics the company’s top line has continued to display solid growth, witnessing an expansion of 40% year-on-year, to record EGP 1 billion sales, achieved with over 1.2 million transactions during 2019.
Marketing Director - Ideators Consulting
© Press Release 2020