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.
Saeed Zaatar, CEO of Contact Financial Holding, said that the issuance reflects the strength of Contact Financial Holding to implement the issuance, especially with the desire of large financial institutions and Egyptian banks to subscribe to the issuance in light of the current conditions on the Egyptian and global economies.
Zaatar Ali affirmed that he confirms the confidence of financial institutions and investors in Contact Financial Holding Group and its subsidiaries (Tharwa Securitization and Contact Finance) for more than 20 years.
He pointed out that the issuance obtained the highest credit rating in Egypt for non-sovereign bonds, which reflects the quality and solidity of the portfolio.
