Capital for Securitization, a leading company in the market of refinancing, announced the completion of its 15th securitized bond issuance, worth EGP 3.035bn. This issuance is the fourth for Tasaheel Microfinance, a wholly owned subsidiary by MNT-Halan, a fintech company that provides digital financial solutions.
The issuance consisted of four tranches with different tenors and ratings. The first tranche, valued at EGP 952m, had a tenor of six months and received a Prime 1 rating – the highest from Middle East Ratings and Investor Services (MERIS). The second tranche, worth EGP 506m, had a tenor of nine months and also received a Prime 1 rating. The third tranche, valued at EGP 541m, had a tenor of 13 months and received a rating of A+. The fourth tranche, worth EGP 1.036bn, had a tenor of 34 months and received a rating of A.
CI Capital acted as the sole financial advisor, issuance manager, and lead arranger for the transaction, while MERIS acted as the rating agency. Matouk, Bassiouny & Hennawy acted as the transaction legal advisor and KPMG-Hazem Hassan Consulting acted as the issuance financial auditor.
Sherif Samir Tawadros, Managing Director of Capital for Securitization, highlighted the importance of debt issuances for non-banking financial institutions, as they enable them to maintain capital adequacy ratios within regulatory limits, strengthen their financial positions, maximize profitability, and support growth plans. He emphasized that the high ratings of these tranches reflect the quality of the subsidiaries’ portfolio and investor confidence in the company’s track record and its ability to offer compelling investment solutions.
Mohamed Aburiah, Vice President of Treasury and Securitization at GB Capital, commented: “GB Capital is proud of the successful conclusion of these issuances, which reflects MNT-Halan group’s confidence to act as the sole securitization largest special purpose vehicle – the company is considered amongst the largest SPV for private sector securitization issuances.”
GB Capital expects to close multiple issuances for its NBFI’s subsidiaries in Q4-2023, with a value exceeding EGP 8bn, which will raise the total issuances for the company to EGP 34bn.
