EGX Approves Listing of the Largest Securitization Bond Issuance Worth EGP 10 Billion
Monday, 9 November 2020Egyptian Exchange Posted
EGX’s Listing Committee approved the listing of Securitization Bonds with a total value of EGP 10bn. The issuance represents 31 percent of the total value of current bond and Sukuk issues, amounting to 31.8 billion pounds. Brings the total number of bonds issues listed in 2020 to 11, the largest number of listed securitization bonds and Sukuk since January 2014, with a total value of EGP 24.1 bn.
The increasing demand for coverage of bond and Sukuk issues reflects the attractiveness of the Egyptian Market as an important sources of financing for companies and institutions growth.
Details of the three tranches listed are as follows:
Tranche “A” for at most 36 months, callable starting September 2021, matured in date July 2023 (EGB692R1S088)
Redeems by semi-annual installments in the light of the actual yield of the related securitization portfolio, amounts to EGP 2,600,000,000 distributed over 2,600,000 bonds at par value of EGP 1,000 / bond, at a variable annual interest rate of (0,50%, above the treasury bills’ rate “182 days”) net after tax (10,40 %), announced on 07-04-2020, (to reach 10,90%) and to be re-calculated every 6 months where the first coupon period starting from the day next to the date of subscription closing to be paid on semi-annual basis. This tranche is locally rated by MERIS as (sf) AA+ on 29\06\2020.
Tranche “B” for at most 60 months, callable starting September 2021, matured in July 2025 (EGB692R1S096)
Redeems by semi-annual installments after the total redemption of tranche A in the light of the actual yield of the related securitization portfolio, amounted to EGP 6,200,000,000 distributed over 6,200,000 bonds at par value of EGP 1000 / bond, at a variable annual interest rate of (0,70%, above the treasury bills’ rate “182 days”) net after tax( 10,40%), announced on 07-04-2020, (to reach 11.10%) and to be re-calculated every 6 months where the first coupon period starting from the day next to the date of subscription closing to be paid on semi-annual basis. This tranche is locally rated by MERIS as (sf) AA- on 29\06\2020.
Tranche “C” for at most 84 months, callable starting September 2021, matured in July 2027 (EGB692R1S104)
Redeems by semi-annual installments after the total redemption of tranche B in the light of the actual yield of the related securitization portfolio, amounted to EGP 1,200,000,000 distributed over 1,200,000 bonds at par value of EGP 1000 / bond, at a variable annual interest rate of ( 0,80%, above the treasury bills’ rate “182 days”) net after tax( 10,40% ), announced on 07-04-2020, (to reach 11.20%) and to be re-calculated every 6 months where the first coupon period starting from the day next to the date of subscription closing to be paid on semi-annual basis. This tranche is locally rated by MERIS as (sf) A on 29\06\2020.
The new bond issue tranches “A”, “B” and “C”, will be added to EGX database, to traded effective 05/11/2020 trading session.
Source: https://www.egx.com.eg/en/NewsDetails.aspx?NewsID=203536