Al Ahli Pharos, a subsidiary of Al Ahli Group for Financial Services, has issued securitisation bonds worth EGP 617.5m for United Finance, another subsidiary of the same group.
The bonds are backed by a portfolio of future lease payments worth about EGP 993m. The issuance was promoted and covered by Al Ahli Pharos, in cooperation with three major banks: the National Bank of Egypt, the Arab African International Bank, and Banque du Caire. The issuance also involved legal, auditing, and rating services from reputable firms.
Maher Abu Seta, Deputy Chairperson and CEO of United Finance, said that the deal is part of the company’s strategy to grow and diversify its funding sources.
Ahmed Haider, Managing Director of Al Ahli Pharos, said that the deal adds to the company’s track record of 15 diverse transactions since the start of the year, consolidating its leading position in the Egyptian market.
Haider added that the company is working on completing several other transactions, including mergers and acquisitions, capital deals, and debt instruments, by the end of the year, highlighting the company’s ability to meet the needs of its clients and the dynamics of the Egyptian market.
Amir Sharif, Executive Director and Head of Debt Instruments Sector at Al Ahli Pharos, noted that the successful cooperation with United Finance has resulted in the company’s first deal in the debt instruments field.
He pointed out that this deal is the eighteenth for Al Ahli Pharos in less than two years and the fourth for Al Ahli’s securitization company, expecting to complete at least five more deals by the end of the year.
The issuance was divided into three tranches, with different values, durations, and ratings. The first tranche was valued at EGP 59m, with a duration of 13 months and a rating of AA+. The second tranche was valued at EGP 269m, with a duration of 37 months and a rating of AA. The third tranche was valued at EGP 289.5m, with a duration of 60 months and a rating of A. All the ratings were provided by MERIS, a credit rating agency.
