Contact Holding completes issuance of EGP1.89b securitized bond

Alieldean Weshahi & Partners – ALC has acted as legal counsel to Contact Financial Holding on the successful conclusion of its 41st issuance of trade receivables bonds, valued at EGP 859.1 billion, for its consumer finance portfolio owned by its subsidiary companies. 

ALC team was headed by managing partner, Bahaa Alieldean (pictured), partner Mahmoud Elaraby, associate Mahmoud El-Gazzar and junior associate Mohamed Gamal. 

The bonds were acquired by Contact Finance and its affiliated sister companies to further strengthen their consumer finance portfolio. The EGP 1.89 billion issuance was divided into three tranches, each with varying maturity periods ranging from 13 to 61 months. 

It is important to note that this issuance is part of Contact Financial Holding’s program to issue approximately EGP 10 billion during the current year, aimed at financing its subsidiary and sister companies. 

The issuance received significant interest from investors, including both banking and non-banking financial institutions.  Moreover, these bonds are recognized as the primary long-term capital market instruments in their respective categories. 

The tranches in this issuance have been assigned credit ratings of AA, AA+, and A by the Middle East Rating & Investors Service (MERIS). The guaranteed portfolio associated with the issuance amounts to approximately EGP 3 billion and has received one of the highest credit ratings for consumer finance portfolios that guarantee trade receivables bonds in the Egyptian market.  

With this successful issuance, the total value of issuances backed by Contact’s guaranteed portfolios in the Egyptian market has reached approximately EGP 24.5billion, comprising 25 issuances. Remarkably, nearly EGP 19.3 billion of the value of these issuances has been timely paid, contrary to prevailing market trends.