CAIRO: Egypt’s A.T. Lease is selling up to LE 570 million ($100 million) of Islamic collateralized mortgage obligations (CMOs), the first in Egypt to be split into separate tranches, the issue’s arranger said on Friday.
A.T. Lease, a sharia-compliant company with a LE 1.43 billion leasing portfolio, is controlled by the Saudi-based Dallah Al-Baraka Group, said Commercial International Bank (CIB), which is arranging the issue.
The notes are sharia compliant and were approved by A.T. Lease’s sharia board, CIB said. They split into tenors of 13 months, three years and five years and will go on sale in a private placement in 10 to 15 days, said CIB’s Mohamed Hassan.
"Companies used to do one tranche in one tenor," Hassan said. "These are relatively more advanced and suit a wider investor base."
The notes securitize 297 contracts with a face value of LE 680 million and a present value of LE 599 million. They include leases on vehicles, real estate and machinery and medical and office equipment, CIB said.
The 13-month note carries a 9 percent coupon, the three-year note a 10 percent coupon and the five-year note a 11.25 percent coupon. Each tenor has a different rating. The placement will continue for about one week.
A.T Lease began operations in 2006 and has a capital of LE 100 million.
