B.TECH, a company that trades and distributes household appliances, electronics, and consumer finance services, plans to finalize a short-term commercial paper issuance worth EGP 1bn by the end of this week. This is the second issuance in a multi-series program with a total value of about EGP 5bn.
According to sources, Commercial International Bank is the coordinator and issuance manager, with Eldib and its partners as legal advisors. Egyptian Gulf Bank is the custodian. The issuance is pending approval from the Financial Regulatory Authority.
The issuance will be fully covered by seven financial institutions: Commercial International Bank, Baraka Bank, Arab Investment Bank, funds affiliated with CI Capital Group, United National Bank, and Kuwaiti Ahli Bank. The proceeds will be used to repay some credit facilities for the company with some of the subscribing banks.
In January of this year, B.TECH issued commercial papers worth EGP 1.038bn in collaboration with Commercial International Bank.
The issuance consisted of three different tranches with different maturities, repayment priorities, credit ratings, and yields, as part of a commercial paper program with a total value of EGP 5bn.
Previously, the Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund, bought a 34% minority stake in B.TECH, one of Egypt’s leading distributors of household appliances, for around $150m.
