EFG Hermes Corp-Solutions and Al Ahly Tamkeen for Microfinance, a subsidiary of the National Bank of Egypt (NBE), are expected to finalize their securitization bond offerings this week, according to sources familiar with the matter.
The sources told Daily News Egypt that the two companies are awaiting the final approval of the Financial Regulatory Authority (FRA) for their issuances, which are valued at EGP 800m and EGP 700m, respectively.
They added that the Egyptian market is witnessing a surge in securitization activity, as about 19 issuances are in the pipeline.
The legal advisor for both issuances is Dreny & Partners, while the financial advisors are EFG Hermes for EFG Hermes Corp-Solutions and Al Ahly Pharos for Al Ahly Tamkeen for Microfinance. The auditor is KPMG Hazem Hassan.
Securitization is a financial technique that allows companies to raise liquidity by selling their receivables to investors, instead of borrowing from banks or other sources. Securitization bonds worth EGP 55bn were issued in Egypt by the end of 2022, according to FRA data.
