The Financial Regulatory Authority (FRA) approved on Wednesday the issuance of EFG-Hermes’ nominal securitisation bonds in exchange for financial rights and post-paid receivables related to a consumer financing portfolio amounting to EGP 532.6m.
It also approved EFG-Hermes’ second securitisation programme — which is worth EGP 2bn — for consumer finance portfolios referred by ValU Consumer Finance.
EFG Hermes acted as the sole financial adviser, manager, regulator, promoter, and underwriter of the issue.
Meanwhile, Dreny & Partners acted as the legal adviser for the transaction, while Hazem Hassan’s KPMG office acted as the issuance’s financial auditor.
Head of the FRA Mohamed Farid said that EFG-Hermes always seeks to activate and develop the capital market and its debt instruments — represented in corporate and securitisation bonds for future and future financial rights, in addition to sukuk — given their vital role in deepening the capital market and adding value to the national economy.
He added that with the completion of the approval, the total issuance of bonds and sukuk that have been approved by the FRA since the beginning of this year will amount to about EGP 14.4bn, which calls for continuing to improve the procedures for offering and listing sukuk and debt instruments within the trading system for its prominent role in financing companies, bodies, and public legal entities.