CI Capital completes Reefy Microfinance’s first securitised bond issuance

CI Capital has announced on Monday its successful conclusion of 700 million Egyptian pounds worth of the first securitised bond issuance on behalf of the Egyptian Company for Securitization – the originator of Reefy Microfinance Enterprise Services.

CI Capital has acted as the sole financial adviser, issuance manager, and lead arranger in the issuance. Banque Misr was the underwriter. Matouk Bassiouny & Hennawy acted as the legal advisor and Baker Tilly was the issue’s financial auditor.

The issuance is part of a three-year programme with a total value of 3 billion pounds. The issuance was well received by market participants, generating solid investor demand, and the underwriting process was conducted by several prominent banks, CI Capital added in its statement.

Reefy’s issuance comes in three tranches; the first valued at 317 million pounds, with a tenor of six months, received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The second tranche, valued at 273 million pounds, with a tenor of 12 months, also received a Prime 1 rating. The third tranche, valued at 110 million pounds, with a tenor of 19 months, received a rating of A.

“CI Capital is proud to conclude Reefy’s maiden issuance, part of its three-year EGP 3bn issuance programme reflecting CI Capital’s commitment to play a pivotal role in expanding the breadth and depth of debt capital markets by bringing high-quality new issuers to market, providing competitive financing alternatives to issuers and compelling investment opportunities for fixed income investors.” said Amr Helal, CEO of the Investment Bank at CI Capital.

“CI Capital continues to solidify its position as the leading diversified financial services group in Egypt; year to date we completed 7 transactions in the debt capital markets space with an aggregate value of c.EGP 22bn,”

Meanwhile, Ahmed Labib, managing director and CEO at Reefy Microfinance Enterprise Services, described the issuance as an important milestone in Reefy’s history.

“… it generates the liquidity necessary to fuel the company’s growth, enhances its financial solvency, lowers financing costs, and enables the company to set competitive prices, which promotes sustainability for both the business and clients, and aligns with the Financial Regulatory Authority’s principles of Responsible Finance.” Labib added.

Established in 2007, Reefy Microfinance Enterprise Services is the first microfinancing institution licensed by the Financial Regulatory Authority (FRA), operating with the sole purpose of lending micro businesses that fall outside the scope of bank financing and serving 170,000 clients across 21governorates. In 2023, the company was ranked among Africa’s 100 Fastest Growing Companies in 2023 as per Statista and the Financial Times.

“The Financial Regulatory Authority played a vital role in promoting debt issuances as an effective financing tool to generate necessary liquidity, and a key tool for financing the capital cycle of different companies, which results in increased competitiveness, a more inclusive economic climate, and a compelling investment opportunity for investors as well.” said Mohamed Abbas, Head of DCM at CI Capital.

“Reefy’s issuance was covered more than once by several banks, financial services companies, and different asset managers, which reflects investor appetite for debt instruments and the Egyptian market’s ability to promote new issuers,”