– Beltone Leasing and Factoring completed its first securitization issuance, raising EGP 1.33 billion, with a 1.5x oversubscription.

– The bond is split into three tranches, ranging from 12 to 48 months, and rated between A and AA+ by MERIS.

– Beltone aims to expand its financing portfolio to over EGP 10 billion by the end of 2024, with plans to integrate fintech into its factoring operations.

Beltone Holding announced that its subsidiary, Beltone Leasing and Factoring, has completed its first securitization issuance, raising EGP 1.33 billion (USD 43.09M) , according to a company’s official statement.

Beltone Investment Banking’s Debt Capital Markets Division served as the Financial Advisor, Issuance Manager, and Bookrunner for the transaction. The issuance was oversubscribed by 1.5x, reflecting the company’s strong financial management and ability to engage with Egypt’s capital markets, attracting a wide range of investors.

The bond is divided into three tranches: Tranche A, valued at EGP 164 million with a 12-month tenor and an AA+ rating from Middle East Rating and Investors Service (MERIS); Tranche B, valued at EGP 945 million with a 36-month tenor and an AA rating; and Tranche C, valued at EGP 224 million with a 48-month tenor and an A rating.

Amir Ghannam, Deputy Head of NBFIs for Leasing, Factoring, and Consumer Finance at Beltone, highlighted that the securitization underscores the resilience of the company’s portfolio and the confidence investors have in its growth strategy. He noted that the oversubscription emphasizes trust in Beltone’s ability to manage a strong portfolio, unlocking capital for future expansion.

Sherif Hassan, Group Treasurer and Managing Director of Debt Capital Markets at Beltone, described the issuance as a key milestone for Beltone Investment Banking, signaling the firm’s commitment to driving innovation in the Debt Capital Markets and offering customized solutions for clients.

The National Bank of Egypt acted as the custodian for the transaction, with Al Ahly Pharos as the arranger and First Abu Dhabi Bank Misr (FABMISR) as the co-arranger. Underwriters included the National Bank of Egypt, FABMISR, Banque Du Caire, and Suez Canal Bank, while Industrial Development Bank participated as a subscriber. Dreny & Partners provided legal advisory services, and KPMG served as the external auditor.

Earlier this month, Ghannam announced plans to grow the company’s financing portfolio to over EGP 10 billion by the end of 2024, with additional plans to integrate financial technology into its factoring operations to enhance international business.