CI Capital Holding for Financial Investments has announced that its leasing arm, Corplease, has completed its 10th securitisation bond issuance, at a value of EGP 2.7bn.
In a statement to the Egyptian Exchange (EGX) on Monday, the company said that the proceeds from the transaction will be used to deleverage the company’s balance sheet. They will also go towards improving its equity balance, and support the company’s future growth plans.
The issuance comes as part of Corplease’s annual securitisation of a part of its leasing portfolio, to provide alternative funding sources and diversify risks exposure. It includes four tranches with maturities of 13, 37, 61, and 84 months, which are rated at AA+, AA, AA-, and BBB, respectively, by Middle East Rating & Investors Service (MERIS).
The 13-month bond is valued at EGP 576m with a variable coupon rate of 15 basis points (bps) over the lending corridor of 9.25%.
The 37-month bond is worth EGP 1.27bn, and has variable coupon rate of 30 bps over the lending corridor of 9.25%.
The 61-month bond, valued at EGP 703m, has variable coupon rate of 60 bps over the lending corridor of 9.25%.
The 84-month bond is worth EGP 163m, and has variable coupon rate of 80 bps over the lending corridor of 9.25%.
CI Capital’s management noted that the proceeds from the issuance will be used to deleverage Corplease’s balance sheet, and boost its liquidity position to accommodate for next year’s expected robust growth.