CI Capital Successfully Concludes EGP 478 mn Debut Securitization Bond Issuance for BM Consumer Finance (Souhoola)

Cairo 25 November 2024:

CI Capital (CICH.CA), the leading diversified financial services group, announced today the successful conclusion of EGP 478mn securitized bond issuance for Capital for Securitization – on behalf of Souhoola, who acted as the originator of the portfolio.

Souhoola’s issuance comes in 3 tranches: the first valued at EGP 280mn, with a tenor of 6 months, received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The second tranche, valued at EGP 139mn, with a tenor of 12 months, also received a Prime 1 rating. The third tranche, valued at EGP 59mn, with a tenor of 20 months, received a rating of A-.

Ahmed El-Shanawany- Managing Director of BM Consumer Finance “Souhoola” stated that the first issue of Souhoola Company with distinguished ratings confirms the quality of the portfolio referred for securitization and raises the company’s financing base, which contributes to increasing the company’s market share according to the company’s expansion strategy during the coming period, consolidating the company’s role in enhancing financial inclusion as per Egypt’s Vision 2030 and improving the overall economy.

Fadi Elias, CFO at BM Consumer Finance, added that the company’s first securitization is a positive step, and reflects the company’s continuous growth in the consumer finance sector. This is to strengthen the company’s financial position in accordance with the rules and guidelines of the Financial Regulatory Authority. In this regard, the company’s statement of financial position in the third quarter of 2024 witnessed a growth of 52% compared to the same period last year, and the customer portfolio showed a growth of 50% over the same period.

“CI Capital is proud to conclude Souhoola’s issuance, the first issuance as part of its three-year, EGP 3.5 billion program. This achievement highlights the outstanding efforts to execute multiple consecutive transactions successfully, cementing CI Capital’s position as the leading diversified financial services group while offering unparalleled financing solutions. Lastly, I would like to extend my gratitude to our DCM team and all parties who contributed to the success of the issuance,” Commented Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital.

“The Debt Capital Markets sector has experienced significant growth, particularly in the increasing number of financing companies making their first debt issuances with the support of CI Capital. This trend reflects the growing interest among non-bank financial institutions (NBFIs) in diversifying their funding sources, which fosters sustainable growth within the sector,” Commented Mohamed Abbas, Head of DCM at CI Capital.

CI Capital acted as the financial adviser, issuance manager, bookrunner and lead arranger in the issuance, while Russell Bedford acted as the issuance’s financial auditor, and Alieldean Weshahi & Partners acted as the issuance’s legal advisor.