Beltone Leasing and Factoring Achieves Successful First Securitization Issuance of EGP 1.33 Billion

Cairo – October 22, 2024: Beltone Holding (“Beltone”) proudly announces that its wholly-owned subsidiary, Beltone Leasing and Factoring, has successfully completed its inaugural securitization issuance, raising EGP 1.33 billion.

Strong Oversubscription Highlights Financial Management
Beltone Investment Banking’s Debt Capital Markets Division acted as the Financial Advisor, Issuance Manager, and Bookrunner for the transaction. The issuance experienced significant oversubscription of 1.5 times, underscoring Beltone’s robust financial management and its capacity to navigate Egypt’s evolving capital markets, thus attracting a diverse array of investors.

Details of the Bond Issuance
The bond is divided into three tranches:

• Tranche A: Valued at EGP 164 million, with a tenor of 12 months, rated AA+ by Middle East Rating and Investors Service (MERIS).
• Tranche B: Valued at EGP 945 million, with a tenor of 36 months, rated AA by MERIS.
• Tranche C: Valued at EGP 224 million, with a tenor of 48 months, rated A by MERIS.

Confidence in Growth and Resilience
Amir Ghannam, Deputy Head of NBFIs for Leasing, Factoring, and Consumer Finance at Beltone, stated, “This securitization demonstrates not only the resilience of our portfolio but also the trust investors place in our vision for growth in Egypt’s non-banking financial services. The 1.5x oversubscription further emphasizes confidence in our ability to manage a robust and high-performing portfolio. This successful transaction highlights our strength and unlocks new capital streams that will propel our future growth and innovation, driving us to set new benchmarks in the industry.”

Commitment to Transforming the Financial Landscape
Sherif Hassan, Group Treasurer and Managing Director of Debt Capital Markets at Beltone, remarked, “The successful conclusion of this issuance marks an important milestone for Beltone Investment Banking, showcasing our commitment to reshaping the financial landscape. As we embark on this journey into the Debt Capital Markets, we are unleashing a wave of innovative financial instruments to transform the market and deliver tailored solutions for our clients that drive growth.”

Transaction Parties Involved
The transaction included the National Bank of Egypt serving as the custodian; Al Ahly Pharos as the arranger; and First Abu Dhabi Bank Misr (FABMISR) as the co-arranger. The underwriters comprised the National Bank of Egypt, First Abu Dhabi Bank Misr (FABMISR), Banque Du Caire, and Suez Canal Bank, with the Industrial Development Bank participating as a subscriber. Legal advisory was provided by Dreny & Partners, while KPMG served as the external auditor.