The Financial Regulatory Authority (FRA) is going to approve on Thursday the 4th issuance of securitisation bonds worth EGP 500m by the Capital Securitization Company, according to Sayed Abdel Fadil, Head of the FRA’s Central Administration for Financing.
The new issuance will raise the total securitisation bonds to EGP 13.1bn since the beginning of 2020. It follows the mega securitisation bonds issue of EGP 10bn for the New Urban Communities Authority (NUCA), which was approved and opened for subscription on Tuesday.
Abdel Fadil told Daily News Egypt that the authority aims to bring the size of the local market’s securitisation bonds to EGP 20bn by the end of 2020.
A number of companies in Egypt are looking to carry out securitisation this year, especially with the current low-interest rates. This has encouraged many companies to consider these bonds as a means of providing quick financing to complete their expansions.
Meanwhile, Abdel Fadil noted that the total Sukuk offerings may exceed EGP 5bn by the end of this year, especially as Sarwa Capital nears offering EGP 2.5bn. This comes in addition to other offerings that Sarwa will manage.
Abdel Fadil noted that several other companies have expressed interest in offering Sukuk, but only one is currently in talks with the FRA to learn more on the requirements.
Capital Securitization falls under the umbrella of GB Auto’s financing arm, GB Capital. Capital Securitization was incorporated on December 2018 in accordance to the capital market law 95/1992 and received its license from FRA early 2019.