Arab Finance: She announced Beltone Holding (“Belton”), its subsidiary, Beltone Financial Leasing and Factoring, has successfully completed the first issuance of securitization bonds worth 1.33 billion Egyptian pounds, according to the statement sent on October 22.
Beltone Underwriting Promotion and Coverage and the Debt Arrangement and Issuance Markets Department acted as the financial advisor, main issue manager and promoter of the issue. The subscription coverage ratio, which exceeded 1.5 times, confirms the company's ability to benefit from the most prosperous capital markets within Egypt, which results in attracting more diversified investments.
The issuance was offered in three tranches, with the value of tranche (A) reaching 164 million Egyptian pounds, with a duration of 12 months, and obtaining a credit rating of (AA+) from the Middle East Credit Rating and Investor Service Company (MERIS), while the value of tranche (B) is 945. One million Egyptian pounds, for a period of 36 months, and obtained a rating of (AA) from Meris. As for tranche (C), its value amounted to 224 million Egyptian pounds, for a period of 48 months, and obtained a rating of (A) from Meris.
In this context, Amir Ghannam, Vice President of Non-Banking Financial Services for Financial Leasing, Factoring and Consumer Finance at Beltone, expressed his happiness with the completion of the company’s first issuance of securitization bonds, which not only confirms the diversity of Beltone’s financial leasing and factoring portfolio, but also reflects investors’ confidence in Beltone’s vision. To advance the non-banking financial services sector in Egypt.
Ghannam pointed out that the subscription coverage ratio, which exceeded 1.5 times, is considered an affirmation of confidence in the company’s ability to attract a portfolio with strong creditworthiness.
He added that this deal reflects the company's strong position and that it will pave the way towards diversifying the source of financing, which in turn will drive growth and innovation, thus preserving Beltone's leadership in the non-banking financial services sector.
For his part, Sherif Hassan, Group Treasurer and Managing Director of the Debt Arrangement and Issuance Markets Department of the Promotion and Underwriting Sector, stated that the successful completion of this issuance constitutes an important step for Beltone Promotion and Underwriting, which reflects our commitment to changing the financial landscape.
This issuance is just the beginning of a series of future achievements for Beltone’s Debt Arrangement and Issuance Markets Department, and we are also working to provide innovative financial solutions that will develop the market and provide solutions specifically designed for our customers to drive growth.”
It is worth noting that the National Bank of Egypt played the role of custodian. Al Ahly Pharos Company worked as a salaryman, with First Abu Dhabi Bank Egypt (FABMISR) as an assistant salaryman. The underwriters for the subscription include the National Bank of Egypt, First Abu Dhabi Bank of Egypt (FABMISR), Cairo Bank, and Suez Canal Bank, with the Industrial Development Bank participating as a subscriber in the subscription process. Draini & Partners provided legal advice, while KPMG acted as the external auditor.
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