Contact Financial Holding announced the closing of the forty-second issuance of securitized bonds by Tharwa Securitization Company, for the consumer financing portfolio referred from Contact Finance Company, with a total value of EGP 1.47bn. The securitization bonds are divided into three tranches with different terms ranging from 13 to 61 months.
This issuance is the third in 2023, bringing the total securitization bonds issued by the company during the year to EGP 5.22bn as part of an issuance program of about EGP 10bn that the company intends to issue to finance its subsidiaries and sister companies.
The issuance was covered by investors from banking and non-banking financial institutions, which reflects the position enjoyed by the securitization bond issuances of Tharwa Securitization Company, which was and still is a leader in being the first and largest non-governmental issuer of securitization bonds in various sectors in the Egyptian market and the largest non-governmental issuer for long-term money market instruments of various types.
Contact Financial Holding Company played the role of issue manager, IPO promoter, and underwriter, while Banque Misr, Arab African International Bank, Ahli United Bank, and CI Capital promoted and covered securities subscriptions, and Al Ahly Pharos, which promoted and covered the subscription.
Ali Al-Din Washahi acted as the legal advisor, while Hazem Hassan Accounting and Auditing (KPMG) served as the issuance auditor.
The tranches comprising this issuance were rated AA+ by the Middle East Credit Rating and Investor Service Company MERIS AA and A.
The portfolio guaranteeing the issuance amounted to about EGP 2.5bn, and that portfolio received one of the highest credit ratings for consumer finance portfolios guaranteeing securitization bonds in the Egyptian market so far, which reflects the quality and excellence of the group’s portfolios.
With this issuance, the value of issues issued in the Egyptian market, guaranteed by portfolios assigned by the Contact Group of Companies, reached approximately EGP 26bn with 26 issues.
Saeed Zaatar, CEO of Contact Financial Holding, commented on this issuance, saying: “We are proud to successfully close this 42nd securitization bond issuance. Directing the investments of bank and non-bank financial institutions towards our portfolio reflects the great confidence in the consumer finance portfolio of our companies. We greatly appreciate the trust investors have placed in us, and we will continue to provide the best opportunities and services to investors and the community alike.”
