Arab Finance: Company announced today CI Capital (CICH.CA) The leading group in diversified financial services, announced the completion of a deal to issue securitization bonds worth 478 million Egyptian pounds for the benefit of Capital Securitization Company, where BM Consumer Finance Company – Sahola LLC was the assignor and creator of the portfolio, according to the statement sent on November 25.
The issuance comes in 3 tranches, the first with a value of 280 million pounds with a maturity period of 6 months, the second with a value of 139 million pounds with a maturity period of 12 months, and the third with a value of 59 million pounds with a maturity period of 20 months. The tranches have obtained distinguished credit ratings from Meres – Middle East Credit Rating Company. And investor service, as the first and second tranches received Prime 1, which is the highest credit rating, while the third tranche received a rating of A-.
Ahmed Al-Shenwani, Managing Director of BM Consumer Finance Company “Sohulah,” stated that Sahulah’s first issuance received a distinguished rating that confirms the quality of the portfolio referred for securitization and raises the company’s financing base, which contributes to increasing the company’s market share in accordance with the expansion strategy followed by the company during the period. In the coming period, this comes to consolidate the company’s role in enhancing financial inclusion in accordance with Egypt’s Vision 2030 and improving the overall economy.
Fadi Elias, Head of the Financial Sector at BM Consumer Finance “Sohola,” added that the company’s first securitization transaction is a positive step and a continuation of the company’s continued growth in the consumer finance sector. This is to strengthen the company's financial position in accordance with the rules and guidelines of the Financial Supervisory Authority. Based on this, the company's financial position statement in the third quarter of 2024 witnessed a growth of 52% on an annual basis, and the customer portfolio also witnessed a growth of 50% on an annual basis.
For his part, Amr Helal, CEO of the investment bank (sell-side) at CI Capital, expressed his happiness with the completion of the issuance of Sahola Company, which is the first issuance since its founding, within a program that will last 3 years with a total value of 3.5 billion Egyptian pounds.
Hilal also added that CI Capital continues to strengthen its position as a leading group in the field of diversified financial services through the implementation of many prominent deals in various sectors. Hilal concluded by highlighting the great efforts made by the work team in the debt markets sector at CI Capital, and all parties that contributed to the success of the issuance.
Mohamed Abbas, Head of the Debt Markets Sector at CI Capital, expressed his gratitude for the completion of the first securitization bond issuance for Sahulah, in addition to the growth of the debt market in Egypt in terms of the number of financing companies conducting their first debt issuances with the help of CI Capital, which reflects the growing interest by Non-banking financial institutions (NBFIs) to expand their funding sources, leading to sustainable growth in the debt markets sector. .
It is noteworthy that in this issuance, CI Capital played the role of financial advisor, arranger, general coordinator, issuance manager, and subscription promoter, while Russell Bedford’s office played the role of financial auditor, and Office & Partners played the role of legal advisor for the issuance.
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