Beltone raises $27.3 million in successful securitization issuance

Feyisayo Ajayi -

Key Points

  • Beltone Leasing and Factoring raised EGP1.33 billion ($27.3 million) in its first securitization issuance, aimed at enhancing financial standing in the MENA region.
  • The oversubscribed issuance attracted strong investor demand, reflecting Beltone's effective financial strategy and ability to manage a high-performing portfolio.
  • Beltone reported an 818% year-on-year increase in operating income in H1 fiscal 2024, reinforcing its leadership in Egypt's financial sector.

Beltone Leasing and Factoring, a unit of Beltone Holdings led by Egyptian business executive Dalia Khorshid, has completed its first securitization issuance, raising EGP1.33 billion ($27.3 million). This move aims to bolster the group’s operations and enhance its financial standing within the MENA region.

The issuance was oversubscribed by 1.5 times, indicating strong demand and reflecting Beltone’s effective financial strategy. This success demonstrates the firm’s ability to attract interest from a diverse range of investors within Egypt's capital markets.

Collaborative efforts fuel success

The bond issuance was split into three tranches—Tranche A (EGP164 million ($3.3 million), 12-month tenor, AA+ rating by MERIS), Tranche B (EGP945 million ($19.3 million), 36-month tenor, AA rating), and Tranche C (EGP224 million ($4.5 million), 48-month tenor, A rating).

The Debt Capital Markets division of Beltone Investment Banking served as the Financial Advisor, Issuance Manager, and Book runner for the securitization. Key participants included the National Bank of Egypt, which acted as custodian, and Al Ahly Pharos as the arranger.

Other underwriters involved were Banque du Caire and Suez Canal Bank, with the Industrial Development Bank participating as a subscriber. Legal support was provided by Dreny & Partners, while KPMG served as the external auditor

Beltone's issuance signals financial resilience

Amir Ghannam, Deputy Head of Non-Banking Financial Institutions (NBFIs) at Beltone, emphasized the significance of the securitization, stating, “This transaction reflects the strength of our portfolio and investor confidence in our growth within Egypt’s non-banking financial sector. The oversubscription reaffirms our ability to manage a high-performing portfolio, opening new capital for future growth.”

Sherif Hassan, Group Treasurer at Beltone, described the issuance as a key milestone, reaffirming the firm’s dedication to reshaping the financial landscape through innovative financial instruments that promote growth and provide tailored solutions for clients.

Beltone reports significant income growth

Founded in 2002, Beltone Holding is a leading financial services provider in the MENA region, with shares listed on the Egyptian Exchange. Its subsidiary, Beltone Leasing and Factoring, established in 2022, has quickly become one of Egypt's top three financing companies.

Under CEO Dalia Khorshid, a former Minister of Investment, Beltone has diversified its services to include brokerage, investment banking, asset management, equity research, and non-banking financial services (NBFIs) like private equity, leasing, factoring, consumer finance, venture capital, mortgage finance, and microfinance.

Recently, Beltone partnered with Cairo Leasing Corporation and Easy Lease to secure a club deal worth EGP600 million ($12.3 million) to finance healthcare services in Egypt. In 2023, it also signed a Leasing and Factoring Agreement with DAMFI valued at EGP480 million ($9.8 million).

Beltone continues to achieve strong financial results, reporting an 818 percent year-on-year increase in operating income to EGP2.9 billion ($59.4 million) in the first half of fiscal 2024, reinforcing its leadership in Egypt's financial sector.