Tamweely launches EGP 5B securitization program in collaboration with Al Ahly Pharos
Updated 11/20/2024 9:49:00 AM
Arab Finance: Tamweely Microfinance has launched its first securitization program valued at EGP 5 billion, marking a significant milestone in its strategy to diversify funding sources and accelerate its expansion, as per an emailed press release to Arab Finance on November 20th.
The launch of this program was made in collaboration with Al Ahly Pharos, the investment banking arm of the National Bank of Egypt (NBE), along with other key financial institutions, including the NBE, the Arab African International Bank, and the Suez Canal Bank.
Legal and auditing support was provided by Matouk Bassiouny & Hanawy Law Firm and Baker Tilly, respectively.
The initial issuance, amounting to EGP 782 million, received a remarkable subscription coverage of 2.6 times, signaling strong investor confidence in the company's financial stability and growing market share in microfinance.
This first issuance is backed by a portfolio of micro-project financing contracts valued at EGP 948.8 million.
The issuance was structured across five tranches, each with varying terms and distinct credit ratings.
The first three tranches received top ratings of P1, while the remaining two were rated A- by Meris, a Middle Eastern credit rating agency.
The breakdown includes a six-month tranche worth EGP 269 million, a nine-month tranche for EGP 195 million, a 12-month tranche of EGP 159 million, an 18-month tranche totaling EGP 138 million, and a 21-month tranche valued at EGP 21 million.
Ahmed Khorshid, CEO and Managing Director of Tamweely, highlighted that the EGP 5 billion program is planned to be rolled out over the next three years and is expected to drive the company's growth as it adapts to a new operating strategy set to begin in early 2025.
This shift comes as Tamweely welcomes new international investors, including the European Bank for Reconstruction and Development (EBRD), SPE Capital's SPE PEF III, Tanmia Capital Ventures (TCV), and British International Investment (BII).
Tamweely, founded in 2017 with an initial capital of EGP 150 million, specializes in microfinance and leasing services for small and medium-sized enterprises.
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