Egypt’s Contact Financial closes EGP 1.5 bn securitized bond issuance

October 4, 2023

Contact Financial Holding has closed an EGP 1.5 bn securitized bond issuance for subsidiaries in its consumer finance portfolio, including Contact Credit, the company said in a statement (pdf). The non-banking financial services went to market with a three-tranche issuance backed by an EGP 2.5 bn portfolio rated AA+, AA, and A from the Middle East Ratings & Investors Service (MERIS).

The buyers : The issuance was subscribed to by Banque Misr, AAIB, Ahli United Bank, Al Ahly Pharos, and CI Capital, according to the statement.

This is Contact’s third issuance of the year,bringing the total value of securitized bonds issued by the company in 2023 to EGP 5.2 bn. The issuance is part of a larger EGP 10 bn securitization program that the company kicked off last November to fund its subsidiaries and sister companies.

More to come in 2023? The company said in June that it planned to wrap up the entire program by the end of this year.

ADVISORS– Contact Financial Holding was issuance manager, subscription promoter, and coverage guarantor. Alieldean Weshahi & Partners provided legal counsel, while KPMG served as the auditor for the securitization process.

DATA POINT– Egyptian companies have issued more than EGP 56.7 bn of securitized bonds so far this year, according to data tracked by Enterprise — 25% more than what was taken to market across the whole of 2022.

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