Matouk Bassiouny & Hennawy (“MBH“) provided legal counsel to Tasaheel For Financing (“Tasaheel”) in a groundbreaking financial venture – Egypt’s inaugural social sustainability securitization bond issuance. This milestone transaction not only stands as the first issuance of social sustainability bonds in the Egyptian securitization market but also represents a remarkable achievement for both MBH and the broader securitization landscape in Egypt. Aligned with the principles of the International Capital Market Association, this initiative supports funding for impoverished and marginalized segments.
Part of Capital Securitization’s fourth securitization program amounting to EGP 13 billion, Tasaheel’s receivables are securitized across various bond issuances under this program. This significant move reinforces sustainability efforts in Egypt, directing funds toward development projects, women’s empowerment initiatives, and projects creating job opportunities for the youth. The first issuance under this program, totalling EGP 3,806,000,000, signifies a transformative step in adhering to amendments to the Capital Market Law and its executive regulations, laying the foundation for similar sustainability programs in Egypt.
Throughout this pioneering process, the Financial Regulatory Authority (“FRA”) provided unwavering support and guidance, facilitating the timely finalization of the issuance. The FRA’s dedicated efforts, particularly in establishing guidelines for green and sustainability bond issuances, contribute to fostering a conducive environment for investments and setting exemplary standards in the Egyptian capital market and securitization arena.
The MBH team advising on this landmark transaction was led by Mohamed Abdel Fattah (Partner and Head of Capital Markets pictured left) and Ashraf Hendi (Partner, pictured right), and included Khaled Abdel Wahab (Senior Associate), Esraa Mohamed (Associate), and Habiba El Naggar (Associate).
The collaboration involved several key entities, notably Commercial International Bank as the Financial Advisor and Underwriter. Arab African International Bank as the Subscription Bank and Underwriter. Suez Canal Bank and the National Bank of Egypt were among the Underwriters. KPMG International as the Auditor, Middle East Rating & Investors Service (MERIS) as the Rating Agency, and Moody’s Investors Services as the Sustainability Technical Advisor.