The Financial Regulatory Authority (FRA) approved, on Sunday, seven securitization bond issuances worth EGP 9.3bn for five companies, with the guarantee of future financial rights portfolios of financial lease activities, consumer financing, mortgage financing, and factoring.
Chairperson of the FRA, Mohamed Omran, said that the capital market is also witnessing more two securitisation bond issuances with a total value of EGP 12.5bn, with the guarantee of financial rights portfolios of real estate development activities.
Omran stated that the annual indicators of securitization bonds are witnessing a remarkable development starting from 2019, following the amendments made to the Capital Market Law No. 95 of 1992 that led to the recovery of the bond market to provide an unconventional alternative of financing for companies. The total volume of securitisation bond issuances exceeded EGP 22bn in 2019, compared to only EGP 5.3bn in 2018.
He indicated that the volume of securitization bond issuances during the current year amounted to about EGP 15.7bn until November 2020, and it is expected to reach nearly EGP 25bn by the year end, an increase of 14% from the previous year.
In another context, Omran announced that the FRA approved the second issuance worth EGP 500m of a short-term bond programme, amounting to EGP 2bn, to finance the working capital of a securities brokerage company.