Contact Financial issues securitization bonds worth 5.22 billion pounds during 2023
Contact Financial Holding, Egypt’s leading non-banking financial services provider, announced the closure of the forty-second issue of securitization bonds issued by Sarwa Securitization, for the consumer finance portfolio referred by Contact Credit and its subsidiaries and sister companies, with a total value of EGP 1.473 billion divided into 3 tranches with different maturities ranging from 13 to 61 months, It is noteworthy that this securitization bond issuance marks the third such issuance by the company in the current year, bringing the total value of securitization bonds issued by Contact Financial Holding in 2023 to EGP 5.225 billion. This issuance is part of a larger program totaling approximately EGP 10 billion, which the company had announced earlier this year to fund its subsidiaries and sister companies.
The issuance was covered by investors from major financial institutions, with Contact Financial Holding taking on the roles of issuance manager, subscription promoter, and coverage guarantor. Concurrently, Banque Misr, Arab African International Bank, Ahli United Bank, Al Ahly Pharos, and CI Capital assumed responsibilities for promotion and coverage guarantees. Legal counsel was provided by Ali El Din Weshahi (ALC), and KPMG served as the financial auditor for the securitization process.
The bond tranches have received AA+ credit rating and AA and A by Middle East Ratings and Investors Service (MERIS), and the underwriting portfolio of the issue amounted to about EGP 2.5 billion, this portfolio has received one of the highest credit ratings for consumer finance portfolios guaranteeing securitization bonds in the Egyptian market to date, reflecting the quality of the Group’s portfolios.
With this bond, the value of the bonds that were Issued in the Egyptian market with the guarantee of portfolios referred by Contact Financial Holding Companies to approximately EGP 26 billion through 26 bonds.
Mr. Said Zater, CEO of Contact Financial Holding, expressed his pride in the successful closure of the forty-second securitization bond issuance, stating, “We are delighted to have successfully concluded our forty-second securitization bond issuance. The fact that banking and nonbanking financial institutions are directing their investments towards our portfolio underscores the immense trust placed in our consumer finance portfolio held by our companies. We deeply value the confidence that investors have in us and remain committed to delivering the finest opportunities and services to both our investors and the community at large.”
