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Contact Holding completes securitized bond issuance of EGP 1.89bn

The issuance came from in 3 tranches with different terms, ranging from 13 to 60 months.
05.04.23 | Source: Daily News Egypt

Contact Financial Holding has completed the second issuance of securitized bonds worth EGP 1.89bn within a multi-issue securitized bond programme worth EGP 10bn, with the aim of financing the expansions of the group’s subsidiaries.

The issuance came from in 3 tranches with different terms, ranging from 13 to 60 months, for the consumer financing portfolio transferred by Contact Finance and Contact Credit Tech for consumer financing, amounting to EGP 2.9bn.

The issuance was covered by investors from major financial institutions, and Contact Financial Holding Company played the role of issuance manager, subscription promoter, and coverage guarantor, and Banque Misr, the National Bank of Egypt, the Commercial International Bank – Egypt, the Arab African International Bank, and Al Ahly Pharos to guarantee and cover IPOs, and CI Capital to promote and cover IPOs in securities by promoting and guaranteeing coverage, while Ali El Din Weshahi (ALC) provided legal advice for the securitization process.

The three tranches of the issuance were awarded an AA+ credit rating by the Middle East Credit Rating and Investor Service Company (MERIS) with an AA+ credit rating. While the portfolio guaranteeing the issuance obtained a credit rating of (A-), which is the highest credit rating for consumer financing portfolios guaranteeing securitization bonds in the Egyptian market.

The volume of the portfolio transferred from the Contact Group of Companies amounts to about EGP 22.6bn, with 24 issuances, and approximately EGP 18.9bn of the value of issuances were paid on time, in addition to returns.