AAIB bank completes the biggest securitization transaction in Egypt

By Amwal Al Ghad English On Sep 12, 2019

Sherif Elwy, vice chairman and managing director of the Arab African International Bank (AAIB)

Egypt’s Arab African International Bank (AAIB) said on Thursday it had completed a securitisation transaction worth 6 billion Egyptian pounds ($365.6 million).

AAIB has acted as the financial advisor, lead coordinator, and underwriter for the securitisation transaction issued by Tameer for Securitization Company for a portfolio of receivables originated by the Egyptian New Urban Communities Authority (NUCA).

This is the biggest securitisation in the Egyptian debt capital market so far, the bank added in a statement.

The signing of the transaction was finalised last July, with a share of 2 billion Egyptian pounds.

It has been done in collaboration with the National Bank of Egypt (NBE), Commercial International Bank (CIB), and EFG Hermes.

A securitisation transaction is a debt capital market financial instrument whereby future receivables are converted into financial securities which can then be listed and traded on the stock exchange.

“Securitisation transactions are vital financial tools as they allow the diversification of financing sources for a certain tier of clients including real estate developers and consumer finance companies amongst others.” AAIB vice chairman and managing director Sherif Elwy said.