Egypt: One Finance Successfully Raises $19.93 Million in Landmark Securitisation Bond Offering

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One Finance, a prominent non-banking financial institution (NBFI) in Egypt, has marked a significant milestone in its financial journey by completing its inaugural securitisation bond offering, raising an impressive EGP 616 million. This accomplishment signifies the first phase of a more extensive securitisation bond program with the ambitious goal of reaching a total value of EGP 3 billion.

The securitisation offering comprised three tranches with varying maturities – 13, 36, and 48 months – resulting in fundraising amounts of EGP 131.8 million, EGP 328.9 million, and EGP 155.3 million, respectively. Notably, all three tranches received a prestigious P1 (SF) rating from MERIS Ratings, underscoring a commendable level of credit quality.

Hazem Madany, the CEO and Managing Director of One Finance, emphasized the pivotal role this offering plays in the broader EGP 3 billion securitisation bond program. He elucidated that the capital raised from this issuance would empower the company to expand its operational capabilities, introduce innovative products to enhance customer purchasing power, diversify its product portfolio, and foster sustainable growth and profitability.

Amr Abdelmaksoud, the CFO of One Finance, underscored the strategic significance of a successful securitisation, highlighting it as a testament to the trust garnered from financial partners. He outlined the company’s intention to utilize the raised funds to diversify its product offerings, achieve sustainable growth, and improve liquidity levels.

The success of this securitisation venture was made possible through the collaboration of key financial institutions. CIB played a crucial role, acting as the sole financial advisor, transaction manager, book runner, and arranger. AAIB, in collaboration with Al Baraka Capital, served as the underwriter and custodian bank. Legal advice was provided by Dreeny & Partners, and Baker Tilly took on the role of auditor. Noteworthy subscribers to the issuance included AAIB, ABC Bank, Al Baraka Bank, CI Capital, and AAIM.

Established in 2022 as a licensed consumer finance company by the FRA, One Finance operates as a shareholding company in partnership with Ayady for Investment and Development, Tamweely for Microfinance, and Post for Investments. The successful securitisation bond offering underscores One Finance’s commitment to innovation, growth, and delivering value to its customers and stakeholders.

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