One Finance, a non-banking financial institution (NBFI) in Egypt, has achieved a significant milestone in its financial history by completing its first securitisation bond offering, raising EGP 616m.
This is the first step in a larger securitization bond program, which aims to reach a total value of EGP 3 billion.
The offering consisted of three tranches with different maturities of 13, 36, and 48 months, raising EGP 131.8m, EGP 328.9m, and EGP 155.3m, respectively. All three tranches received a P1 (SF) rating from MERIS Ratings, indicating a high level of credit quality.
Hazem Madany, CEO and Managing Director of One Finance, said that the offering was a crucial step in the EGP 3 billion securitization bond program. He explained that the proceeds from the issuance would help the company expand its capabilities, introduce new products to enhance customer purchasing power, diversify its product portfolio, and foster sustainable growth and profitability.
Amr Abdelmaksoud, CFO of One Finance, stressed the strategic importance of a successful securitization, saying that it was a sign of trust from financial partners. He said that the company would use the funds raised to diversify its product offerings, achieve sustainable growth, and improve its liquidity levels.
Several key financial institutions played vital roles in the success of this securitization. CIB acted as the sole financial advisor, transaction manager, book runner, and arranger. AAIB, in collaboration with Al Baraka Capital, served as underwriter and custodian bank. Dreeny & Partners provided legal advice, while Baker Tilly was the auditor. Notable subscribers to the issuance included AAIB, ABC Bank, Al Baraka Bank, CI Capital, and AAIM.
One Finance was established in 2022 as a licensed consumer finance company by the FRA. One Finance operates as a shareholding company in partnership with Ayady for Investment and Development, Tamweely for Microfinance, and Post for Investments.
