Contact Financial Holding, a premier provider of non-banking financial services in Egypt, has successfully concluded its first securitization bond issuance for the year 2024. The issuance, managed by Sarwa Securitization, comprises a consumer finance portfolio from Contact Credit, its affiliates, and sister companies, totaling EGP 1.04bn. This portfolio is segmented into three tranches, with maturities ranging from 13 to 60 months.
Major financial institutions have underwritten and subscribed to the issuance, with Contact Financial Holding spearheading the process as the issuance manager, promoter, and underwriter. Collaborating as transaction underwriters were Arab African International Bank, Banque Du Caire, CI Capital, and Al Ahly Pharos, with Al Ahli Bank of Kuwait – Egypt being a principal subscriber alongside various money market funds. Arab African International Bank served as the custodian, and Banque Du Caire functioned as the placement agent. Legal advisory was provided by Ali El Din Weshahy (ALC), and KPMG was appointed as the financial auditor.
The bond tranches have been rated AA+ and AA, with one tranche receiving an A rating by the Middle East Ratings and Investors Service (MERIS). The underwriting portfolio, valued at EGP 1.8bn, has garnered one of the highest credit ratings for consumer finance portfolios in Egypt, underscoring the quality of Contact’s offerings. To date, Contact’s cumulative bond issuances in the Egyptian market, backed by its portfolios, amount to EGP 28.3bn across 28 bonds.
Said Zater, CEO of Contact Financial Holding, remarked on the issuance: “Despite the economic headwinds, including a significant interest rate increase of over 6% by the Central Bank of Egypt in March, we’ve successfully executed our latest securitization bond issuance. This accomplishment attests to Contact’s dedication to delivering superior financial solutions to our customers amidst challenging times. It also signifies the trust that both local and international financial institutions place in our robust credit portfolio, our diverse financial products, and our team’s expertise. We remain committed to innovating and providing advanced financial services that meet the dynamic demands of the marketplace.”
