Commercial International Bank (CIB) acted as the financial advisor, exclusive issuance manager, guarantor, and underwriter for the issuance of social sustainability securitization bonds worth EGP 3.806bn for Tasahil Finance, a subsidiary of MNT Halan.
The bank said in a statement that the issuance was divided into six tranches with different terms, payment priority, credit rating, and rate of return.
The bonds received a credit rating from Meris Credit Rating Company of P1, P1, P1, A-, A-, A- for the six tranches respectively, reflecting the high quality of the assigned portfolio.
Moody’s acted as a consultant expert for sustainable development, which granted the SQS1 – Excellent rating, the highest rating for consistency with the principles of social sustainability issued by the International Capital Market Association – ICMA, as well as the “High” rating, the highest degree of contribution to sustainability.
This issuance is part of a bond issuance program with a total value of EGP 13bn over three years after the company obtained the approval of FRA.
The social sustainability securitization bonds, issued by Tasahil, are a milestone in Egypt’s commitment to sustainable development and responsible financing, by integrating innovation in securitization with sustainability principles. These bonds open new opportunities for investors who want to align their investment portfolios with environmental and social goals.
Tasahil offers financing programs for Egyptian citizens who do not deal with the banking sector, and the most important of these programs are rapid digital financing, microenterprises, and small and medium enterprises.
Amr El-Ganaini, Executive Vice President and Managing Director of CIB said, “The issuance of the first social sustainability securitization bonds in Egypt is a significant turning point in CIB’s commitment to environmental and social responsibility. This pioneering achievement reflects our dedication to driving positive change and contributing to a more sustainable future for Egypt.”
Menan Awadallah, Head of the Bank’s Bonds, Syndicated Loans and Debt Markets Department, said, “The fruitful and mutual cooperation between CIB and Tasahil has led to this historic success and sustainability in Egypt. One of the main features of social sustainability securitization bonds is that they support initiatives that enhance social development, such as financial inclusion and job creation, thus addressing pressing social challenges, and providing attractive financial returns to investors, as these bonds combine the possibility of achieving competitive returns and ensuring investment in sustainable social projects at the same time.”
CIB promoted the issuance and the subscription was covered 1.4 times by several banks, while CIB, NBE, AAIB, and the Suez Canal Bank guaranteed the coverage.
The Arab Banking Corporation, Abu Dhabi Commercial Bank, Al Ahli Bank of Kuwait, and the Arab International Banking Company participated in the subscription. The office of Matouk Bassiouny and Partners acted as the legal advisor for the offering, Hazem Hassan Accounting and Auditing Office (KPMG) acted as the auditor of the issuance, and Capital Securitization Company acted as the issuer of the transaction.
