Arab Finance: Al-Ahly Pharos Company for Promotion and Underwriting, the investment banking arm of the National Bank of Egypt, announced the success of the first issuance of the securitization program of the Tamweel Company for micro-enterprises, at a value of 782 million pounds, with a coverage rate of 2.6 times.
This high coverage reflects investors’ confidence in the issuance based on the solid financial position of Tamweely Company and its constantly growing market share in the field of microfinance. This issuance is secured by a portfolio of future financial rights for microproject financing contracts worth 948.8 million pounds.
The issuance, distributed over five tranches with varying deadlines, was completed in cooperation between Al-Ahly Pharos Company and the National Bank of Egypt and the Arab African Bank as guarantors of the issuance, the Arab African International Bank as the recipient of the subscription, and the Suez Canal Bank as the custodian, while the office of Matouk Bassiouni and Hanawi Law Firm and Legal Consultations played the role. The legal advisor for the issuance, and Baker Tilly Office, played the role of auditor, while Meris, Middle East Credit Rating and Investor Service, granted the credit rating for the issuance.
The statement also explained that the securitization program includes several issues, and the value of the first issue amounted to 782 million pounds, which was divided into 5 tranches with varying maturities that received distinguished credit ratings from Meris Credit Rating Company, where they received ratings of P1 for the first three tranches and A- for the last two tranches. The value of the first tranche is 269 million pounds, lasting 6 months, the second is worth 195 million pounds, lasting 9 months, the third is worth 159 million pounds, lasting 12 months, the fourth is worth 138 million pounds, lasting 18 months, and the fifth is worth 21 million pounds, lasting 21 months.
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