Misr Capital Investments, the investment arm of Banque Misr, has concluded EGP 2.2bn worth multiple-tranche asset-backed securitised bonds issued by the Egyptian Securitization Company, and originated by CorpLease.
The eighth securitisation bond issuance for CorpLease – described by Misr Capital as “the largest leasing portfolio-backed securitised issuance yet on the Egyptian Exchange” – was backed by a single pool of receivables valued at EGP 3bn due before the legal maturity of the notes.
Misr Capital acted as lead manager, arranger, and promoter of the transaction. The issuance was completed in cooperation with Banque Misr, National Bank of Egypt, and Arab African International Bank as arrangers, promoters, and guarantors of the issuance, while the Commercial International Bank, Banque du Caire, and Attijariwafa Bank acted as guarantors. The underwriting in the issuance was closed on Sunday 29 December 2019, as Banque Misr also acted as a custodian.
CorpLease is one of the largest financial leasing companies and the largest issuer of securitization bonds secured by financial leasing contracts with a total of eight securitisation transactions exceeding EGP 7bn.
Khalil Al-Bawab, managing director and CEO of Misr Capital, said the issuance comes in line with the restructuring efforts of the company and adding new activities with the aim to transform it into an integrated investment bank, so as to become a one-stop-shop for banking and non-banking services for investors and companies.
The company prioritises the debt markets, especially fixed-income instruments, out of its belief in the vital role that financial products play in the national economy, especially in light of the state efforts in this sphere, represented in the Financial Regulatory Authority’s issuance of new fixed-income products, such as Sukuk, and short-term and green bonds.
The issuance is divided into four tranches with 13, 37, 61, 84-month tenures and the yield on the Coupon will be variable linked to 91-day treasury bills (net of tax). The pricing will be reviewed every three months. The Middle East Rating & Investors Service (MERIS) has assigned the following ratings on the national scale to the multiple-tranche notes.
Tranche A: (AA+ rating) at a value of EGP 385.52m, due in 13 months, with a floating coupon equal to the 91-days T-Bills rate (net of tax) + 0.40% p.a. payable monthly.
Tranche B: (AA rating) at a value of EGP 886.24m, due in 37 months, with a floating coupon equal to the 91-days T-Bills rate (net of tax) + 0.90% p.a. payable monthly.
Tranche C: (AA- rating) at a value of EGP 748.77m, due in 61 months, with a floating coupon equal to the 91-days T-Bills rate (net of tax) + 1.40% p.a. payable monthly.
Tranche D: (BBB rating) at a value of EGP 182.46m, due in 84 months, with a floating coupon equal to the 91-days T-Bills rate (net of tax) + 1.80% p.a. payable monthly.
