AT Lease closes third EGP 1.62bn securitization bonds

Fatma Salah
5 Min Read

Tarek Fahmy, CEO and MD at AT Lease, has announced the conclusion of the third securitization bonds of its portfolio, at EGP 1.62bn. The proceeds of the securitization transaction will be utilized to enhance the company’s financial position, in addition to financing its expansion plans and maximizing profitability and return on equity. 

Misr Capital, the investment banking arm of Banque Misr, and Al Ahly Pharos acted as lead arrangers, financial advisor, bookrunner and underwriter. 

Khalil El Bawab, CEO and Managing Director of Misr Capital, stated that the successful conclusion of the issuance and the continuation of cooperation with AT Lease, given that it is a leading economic growth driver and is the first financial leasing company to provide non-bank financial services in compliance with the provisions of Islamic Sharia since its establishment in 2006.

He added: “The team’s ability to successfully complete the issuance is a testament to the Company’s ability to maneuver challenges, especially in light of pressures facing financial markets around the world. The team is dedicated to achieve Misr Capital’s strategy in developing the Egyptian debt capital market in cooperation with all parties, especially the FRA, which plays a vital role in the continuous development of the legislative and operational environment in the Egyptian market.”

Ahmed Haidar, CEO of Al Ahly Pharos, stated: “The conclusion of the issuance on time is the culmination of the efforts made by all parties throughout the securitization process, especially both AT Lease and the FRA, which provided their full support for the issuance. The success of the issuance is reflected in the turnout of investors and subscribe in light of the current challenges facing global financial markets, which reflects confidence in the quality of the portfolio of AT Lease.”

The issuance is divided into 3 tranches with different maturities with a variable return linked to the overnight lending rate announced by the Monetary Policy Committee of the Central Bank of Egypt, in addition to a margin, provided that the pricing is reviewed every meeting of the Monetary Policy Committee of the Central Bank of Egypt, and the three tranches obtained an outstanding rating of AA+ and AA creditworthiness and A, respectively, from the Middle East Credit Rating and Investors Service (MERIS), which are as follows:

Mohamed Abbas, Acting Head of Investment Banks – Debt Instruments – at Misr Capital told “Daily News Egypt”, that the importance of the issuance is not only in its success amid market challenges, but in the vital role that securitization operations play in increasing the liquidity rates of the financial leasing sector, since it contributes to increasing the financing capacity available to many of the companies in various vital sectors in the Egyptian market, which contributes to giving them the necessary strength to seize investment opportunities for expansion and business development

The first tranche: with a tenor of 13 months, at a value of EGP 271.4m, rated A+.

The second tranche: with a tenor of 37 months, at a value of EGP 728.4m, and it will be consumed monthly after the completion of the first tranche or before, in light of the actual proceeds, and obtained a credit rating of A.

The third tranche: with a 60-month term, worth EGP 630m, and it will be consumed monthly after the completion of the second tranche or before, in light of the actual proceeds, and obtained a credit rating of A.

Fahmy added: “That obtaining the third tranche of this classification reflects the success of the board of directors and the executive management of the company and its strategy over the past years in building high quality portfolio, a trait that has always made AT Lease a major entity in the Egyptian financial leasing sector, since its inception in 2006 until now.”

He concluded: “I would like to express my gratitude to the Financial Supervisory Authority and its employees, and all parties to the securitization transaction for the outstanding effort made to make this issuance a success.”

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