CI Capital Successfully Concludes Securitized Bond Issuance

Cairo 2 November 2023

CI Capital (CICH.CA), the leading diversified financial services group, announced today the successful conclusion of EGP 3.035bn securitized bond issuance for Capital for Securitization, on behalf of Tasaheel Finance, who acted as the originator of the portfolio.

The issuance comes in 4 tranches: the first tranche, valued at EGP 952mn, with a tenor of 6 months, and the second tranche, valued at EGP 506mn with a tenor of 9 months, received a Prime 1 rating, the highest from Middle East Ratings and Investor Services (MERIS). The third tranche, valued at EGP 541mn, with a tenor of 13 months, received a rating of A+, while the fourth tranche, valued at EGP 1.036bn with a tenor of 34 months, received a rating of A.

“The Egyptian debt market is picking up pace across various sectors, particularly the non-banking financial services sector, as debt issuances are regarded as the perfect tool for companies to maintain their capital adequacy ratio within limits set by the FRA, as well as utilize issuance proceeds to reinforce the company’s financial position, maximize profitability and return on equity while using them as a 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 to 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 the incorporation of micro, small, and medium Enterprises in 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, while Matouk Bassiouny & Hennawy acted as the legal advisor and KPMG- Hazem Hassan Consulting acted as the issue’s financial auditor.

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