Contact for consumer finance, a subsidiary of Contact Financial Holding, aims to close a securitization bond issuance of EGP 1.5bn within a month.
Saeed Zaatar, CEO of Contact Financial Holding, told Daily News Egypt that the issuance is for consumer goods. He expects that it will be completed within a month after obtaining the necessary approvals from Financial Regulatory Authority (FRA), to become one of the largest securitization issuances in the consumer finance sector.
The FRA approved the issuance of “Mudaraba Sukuk” with a value of EGP 2bn for 84 months. This is the fourth version of sukuk issuances by Contact Financial.
The company directs the outcome of the issuance to finance the purchase of cars owned by its own customers or customers of its subsidiary and sister companies that carry out the same activity, bringing the total sukuk issued this year to EGP 5.251bn.
It is worth noting that the total issuances of bonds and sukuk that obtained the approval of the FRA in 2022 is worth about EGP 16.410bn.