By : Bakinam Khaled

Raya Holding for Financial Investments (RAYA.CA on EGX), an auspicious investment conglomerate managing a diversified investment portfolio, announced today that it has successfully concluded and issued its fifth securitized bond issuance in its history, with a total value of EGP 859 Mn, through its subsidiary issuer Aman Securitization SAE.

This is considered the second issuance of the first multiple-issuance program of Aman Securitization original slated for EGP 5 billion over three years. It is also the fifth in Aman’s history – as it issued 5 securitization bonds with a combined total value of c. EGP 3 billion to fund our operations and growing lending portfolios.

The highly granular bond offering consists of four tranches secured and collateralized by consumer finance loans originating from both Aman Financial Services SAE and Aman Consumer Finance SAE (Originating Entities). The issuance is highly granular, collateralized and backed by a huge array of c. 85k underlying contracts and collateralized debt obligations, comprising a wide array of a diversified offering of consumer finance loans.

CI Capital acted as the sole lead-arranger and underwriter for the bond issuance, while the National Bank of Egypt (NBE) and First Abu Dhabi Bank (FAB)-Egypt acted as co-underwriters for the issuance, and Bank Misr (BM) acted as custodian and the issuance’s subscription bank. United for Auditing, Taxation, Advisory and Financial Services (UHY - Egypt) served as the independent financial auditor while Zaki Hashem & Partners (ZH&P) acted as legal auditors and advisors.

The credit rating for the issuance has been undertaken by Middle East Rating & Investors Service (MERIS), the regional Moody’s Investor Services affiliate (Moody’s). 

On such occasion Mr. Ahmed Khalil, Group CEO of Raya Holding, commented: "We are pleased to have concluded the second issue of Aman securitization multiple bond issuances program. This transaction marks Aman’s commitment towards growth as we aspire to continue growing Aman to a regional powerhouse in the fintech and digital-banking space.

Mr. Hossam Hussein, Group CFO of Raya Holding, said: "We are very proud for successfully closing this fifth issuance in the successful string of our securitized bond offerings, a strong testament to our long-lasting and successful partnerships with all debt market stakeholders, whom we are very thankful to, and are always looking forward for expanding our relationship with.

This is the largest bond issuance in Raya’s history, and on the back of continued trust by the market in our issuances, it was almost 2 times oversubscribed”. He also added, "Apart from the bond issuances, we are studying other innovative financing alternatives to maximize the group’s funding portfolio mix between securitization bonds, credit facilities, and Sukuk issuances to fund our growth potential, and growing lending portfolios under both Raya and Aman.”

Mr. Hazem Maghazi, Co-CEO of Aman Holding commented: "Since 2019, Aman has successfully issued 5 securitization bonds with a combined total value of c. EGP 3 billion to fund our operations and growing lending portfolios. In addition, this is the first bond offering originated by both Aman Financial Services and Aman Consumer Finance, a subsidiary of Aman Holding that was recently incorporated in the first quarter of 2023 to host a portion of our consumer lending business”. He also added: "Aman aims to continue its successful trend of bond issuances, and we expected to issue the sixth securitized bond with a total value around one billion Egyptian pounds prior to the end of Q4-2023, to fund our growing lending businesses.

We are also proud of how fast our portfolios have grown in the past couple of years since our inception in 2017, and we expect to reach a consolidated outstanding portfolio of c. EGP 10 billion by end of FY2023 (on balance-sheet, and excluding the securitized portfolios) segregated between Micro, Consumer, SME, Islamic, and Nano lending; which will make us the fastest growing by far in the Egyptian private NBFS market.”