CI Capital completes $80 million bond issuance, setting record in Egypt’s non-banking sector

Timilehin Adejumobi -
Key Points
  • CI Capital completed an $80 million securitized bond issuance for Tasaheel Finance, reinforcing its role in Egypt’s non-banking financial sector.
  • The bond's first tranche, valued at $28.4 million, received a Prime 1 rating, underscoring the strength of the underlying assets.
  • This issuance is Egypt’s largest non-sovereign securitization bond, attracting 60% of investment from non-traditional banking asset managers.

CI Capital, the leading diversified financial services group, led by Egyptian tycoon Mahmoud Attalla, has successfully completed an $80 million securitized bond issuance for Capital for Securitization. This marks the third collaboration with Tasaheel Finance, solidifying CI Capital's pioneering role in Egypt’s burgeoning non-banking financial sector.

Tasaheel completes six-tranche bond sale

The six-tranche bond issuance is underpinned by assets from Tasaheel, which served as the originator of the portfolio. The first tranche, valued at EGP1.394 billion ($28.4 million), features a six-month tenor, while the second and third tranches are valued at EGP666 million ($13.6 million) and EGP569 million ($11.61 million), with respective tenors of nine and twelve months.

Each of these initial tranches received a Prime 1 rating—the highest possible grade from Middle East Ratings and Investor Services (MERIS)—highlighting the robustness of the underlying assets.

The subsequent tranches include a fourth valued at EGP 763 million ($15.6 million) with an 18-month tenor, a fifth at EGP 296 million ($6.05 million) with a 24-month tenor, and a sixth at EGP 231 million ($4.7 million) with a 31-month tenor, all rated A-.

New milestone for CI Capital and Tasaheel

Amr Helal, CEO of CI Capital’s Investment Banking division, hailed the transaction as a significant milestone in the firm's partnership with Tasaheel. “With this transaction, CI Capital has now issued three securitization bonds for Tasaheel, totaling EGP 10.8 billion ($220 million), strengthening our strategic role in expanding financial inclusion,” Helal stated.

Mohamed Abbas, Head of Debt Capital Markets at CI Capital, emphasized the significance of the issuance. “This marks Egypt’s largest non-sovereign securitization bond,” he noted. “Roughly 60 percent of the bond attracted investment from asset managers outside traditional banking, underscoring CI Capital’s commitment to diversifying our investor base,” he added, pointing to the firm’s ambitions in regional debt issuance.

In this transaction, CI Capital assumed multiple roles, including financial advisor, issuance manager, book-runner, and lead arranger, with Russell Bedford serving as financial auditor and Matouk Bassiouny & Hennawy as legal counsel.

Leading financial solutions for Egypt

Under the guidance of Chairman and CEO Mahmoud Attalla, CI Capital has transitioned from a core investment bank to a diversified financial powerhouse, offering services in leasing, microfinance, and a full suite of financial solutions across Cairo, New York, and Dubai. Recognized as Egypt’s “Best Investment Bank” by EMEA Finance for four consecutive years, CI Capital has expanded its influence, with Attalla holding a 0.035 percent stake in the company.

The partnership with Tasaheel aligns with Egypt’s national agenda for financial inclusion, enhancing sustainable finance for micro-enterprises and underserved communities. This issuance further consolidates CI Capital's leadership in debt issuance, catering to the growing demand from local and regional investors.