Qasatli Issues Second Tranche of Securitization Bonds Valued at EGP 6.5 Billion in Collaboration
“Qasatli” for Real Estate and Consumer Finance Company has announced the successful issuance of the second tranche of securitization bonds with a value of EGP 159.2 million in collaboration with the financial group EFG Hermes Holdings. This is part of a comprehensive program to issue securitization bonds with a total value of EGP 6.5 billion.
The recently issued securitization bonds from “Qasatli” for Real Estate and Consumer Finance saw significant interest from investors, and the issuance was fully subscribed within minutes of the offering.
These bonds derive their value from a large financial portfolio consisting of multiple tranches, with a total value of EGP 287 million. The issuance achieved an outstanding credit rating of (AA+).
The securitization bonds were issued in three tranches with varying maturity periods. The first tranche had a 13-month maturity period with a value of EGP 15.9 million and a credit rating of (AA+). The second tranche had a 36-month maturity with a value of EGP 73.2 million and a credit rating of (AA). The third tranche is scheduled to have a 70-month maturity period with a value of EGP 70 million after the completion of the offering of the first and second tranches, and it carries a credit rating of (AA+).
It is worth noting that the Middle East Credit Rating Agency “MERIS” rated the creditworthiness of the issuance.
Advisors and Subscribers:
EFG Hermes Holdings, a leading financial services company in Egypt, acted as the sole arranger and financial advisor for the offering and also provided the overall subscription coverage in collaboration with Commercial International Bank (CIB).
Commercial International Bank played a pivotal role as the custodian and receiver of the subscription process, ensuring a smooth and profitable investment experience.
El Darrini & Partners provided legal advisory services for the offering, and KPMG served as the legal accountant.
On this occasion, Mohamed Youssef, Chairman of the Board of Directors of “Qasatli” for Real Estate and Consumer Finance, expressed his gratitude to the team and partners for the success of the issuance, stating, “We are pleased with the strong demand from investors for the second tranche of the securitization bonds, which serves as a testament to the confidence of investors in our company and our business model. We are thankful to our partners for their support and role in achieving this successful issuance.”
Youssef added, “The issuance of securitization bonds represents a positive development for the Egyptian economy and confirms the increasing confidence of investors in economic performance. Additionally, it enhances the appeal of the Egyptian capital markets and provides a new source of funding for Egyptian companies, supporting their economic growth and creating more job opportunities in the Egyptian market.”
Amr Mahfouz, Head of the Financial Sector at “Qasatli” for Real Estate and Consumer Finance, stated, “This issuance represents a significant achievement for the company, being the second issuance of securitization bonds. We were pleased with the response of investors to this issuance. Securitization is a valuable tool for us to raise capital and diversify our sources of funding, and we plan to issue more securitization bonds to support our growth trajectory.”
