Egyptian consumer finance company Contact Financial closed EGP 1.9 bn securitization issuance

April 4, 2023

Contact Financial has closed an EGP 1.9 bn securitized bond issuance for its consumer finance arms Contact Creditech and Contact Credit, it said in a statement (pdf). The three-tranche issuance is backed by an EGP 2.9 bn portfolio and has tenors ranging between 13 and 60 months and ratings of AA+, AA, and A from the Middle East Ratings & Investors Service (MERIS).

Who bought in? Contact Financial Holding, the National Bank of Egypt, Banque Misr, CIB, AAIB, Al Ahly Pharos, and CI Capital all acted as underwriters. Unnamed banking and non-banking institutional investors also subscribed to the transaction, the statement reads.

Contact is now some 30% through its EGP 10 bn securitization program, which kicked off last Novemberwith an EGP 1.1 bn issuance.

Advisors: Contact Financial Holding was bookrunner and arranger for the issuance. CI Capital was promoter, while the good people at Alieldean Weshahi & Partners were counsel.

It’s looking like a hot year for securitization: This latest issuance takes the total value of securitized bond issuances this year to EGP 12.5 bn, up some 36% from the same period last year.

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