Contact closes EGP 1.21B securitization issuance for consumer finance subsidiaries
Updated 12/29/2024 11:00:00 AM
Arab Finance: Contact Financial Holding has closed its 45th issue of securitization bonds with a total value of EGP 1.214 billion, according to a press release.
The offering was issued by Sarwa Securitization and backed by a consumer finance portfolio generated by Contact Credit, its subsidiaries, and sister companies.
The issuance was divided into three tranches with different maturities ranging from 13 to 60 months.
This securitization bond issuance marks the second issuance by the company in 2024, following the EGP 1.04 billion bond issuance last May.
The bond tranches received an AA+ credit rating, AA and A by Middle East Ratings and Investors Service (MERIS).
The underwriting portfolio of the issue hit nearly EGP 1.895 billion. It received one of the highest credit ratings for consumer finance portfolios guaranteeing securitization bonds in the Egyptian market to date.
The transaction was underwritten and subscribed to by major financial institutions, with Contact Financial Holding taking on the roles of issuance manager, promoter, and underwriter.
Ahly Bank of Kuwait, Commercial International Bank (CIB), CI Capital, and Al Ahly Pharos also acted as transaction underwriters, while Al Ahli Bank of Kuwait – Egypt, and CIB acted as a major subscriber along with several money market funds.
Said Zater, CEO of Contact Financial Holding, commented: “This issuance highlights the market’s confidence in our credit portfolios, which are backed by strong credit ratings, and demonstrates the strong demand from both banking and non-banking financial institutions in investing in these bonds, reaffirming the robustness of our consumer finance portfolio."
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