Egyptian financial services companies Al Ahli Faros and CI Capital have successfully executed three securitization issuances totaling EGP 4.01 billion for the benefit of subsidiaries of MNT-Halan. The issuances were carried out in a single day and were oversubscribed by various investment portfolios and funds. The transactions were facilitated by Al Ahli Faros and CI Capital, who acted as financial advisors and issue managers.
The first issuance, valued at EGP 2.28 billion, was executed for Tusahil for Finance, a subsidiary of MNT-Halan. The issuance consists of a single tranche with a 13-month tenor and an A- credit rating. The issuance is guaranteed by a portfolio of future financial rights worth approximately EGP 2.8 billion, which were assigned by Tusahil for Finance. This represents the 13th issuance by Tusahil for Finance and the second under the 19th program by Capital for Securitization.
In addition to the EGP 2.28 billion issuance, Tusahil for Finance also executed another issuance worth EGP 1.2 billion. This represents the 14th issuance by Tusahil for Finance and the third under the 19th program by Capital for Securitization. The issuance has a 13-month tenor and an A- credit rating, and is guaranteed by a portfolio of future financial rights worth approximately EGP 1.3 billion.
The third issuance, valued at EGP 528.5 million, was executed for Hala for Consumer Finance, another subsidiary of MNT-Halan. This represents the sixth issuance by Hala for Consumer Finance and the sixth under the seventh program by Capital for Securitization. The issuance consists of a single tranche with a 13-month tenor and an A- credit rating. The issuance is backed by a portfolio of future financial rights worth approximately EGP 647 million.
Capital for Securitization played a key role in the transactions as the securitization company and issuer of the bonds. The legal advisor for the transactions was Mاعتouk Bسيouni and Hناوي, while the accounting firm Baker Tilly, led by محمد هلال and وحيد عبد الغفار, acted as the auditor. The credit rating for the issuances was provided by the Middle East for Credit Rating and Investor Services (MERIS).
According to a statement released by the companies, the successful execution of the three issuances was made possible by the investor base of Al Ahli Faros and CI Capital. The strong demand from investment portfolios and funds reflects the ability of MNT-Halan's companies to diversify their funding sources and attract a wide range of investors.
The EGP 4.01 billion issuances are a significant milestone for MNT-Halan, demonstrating the company's ability to access the capital markets and secure funding for its subsidiaries. The transactions also highlight the growing importance of securitization as a funding tool for Egyptian companies, allowing them to tap into new sources of capital and manage their risk more effectively.
Key points
- Al Ahli Faros and CI Capital executed EGP 4.01 billion securitization issuances for MNT-Halan's subsidiaries.
- The issuances were carried out in a single day and were oversubscribed by various investment portfolios and funds.
- The transactions demonstrate MNT-Halan's ability to diversify its funding sources and attract a wide range of investors.
