Egypt’s FRA approves 7 securitisation bond issuances of EGP 10bn

The Financial Regulatory Authority (FRA) approved seven securitization bond issuances worth 9.3 billion Egyptian pounds for five companies, with the guarantee of future financial rights portfolios of financial lease activities, consumer financing, mortgage financing, and factoring.

Chairperson of the FRA, Mohamed Omran, said that the capital market is also witnessing two more securitisation bond issuances with a total value of 12.5 pounds, with the guarantee of financial rights portfolios of real estate development activities.

Omran stated that the annual indicators of securitization bonds are witnessing a remarkable development starting from 2019, following the amendments made to the Capital Market Law No. 95 of 1992 that led to the recovery of the bond market to provide an unconventional alternative of financing for companies.

The total volume of securitisation bond issuances exceeded 22 pounds, in 2019, compared to only 5.3 pounds in 2018.

He indicated that the volume of securitization bond issuances during the current year amounted to about 15.7bn pounds until November 2020, and it is expected to reach nearly 25bn pounds by the year end, an increase of 14 percent from the previous year.

In another context, Omran announced that the FRA approved the second issuance worth 500 million pounds of a short-term bond programme, amounting to 2bn pounds, to finance the working capital of a securities brokerage company.