• BM Consumer Finance (Souhoola) completed a USD 9.6M (EGP 478M) securitized bond issuance for Capital Securitization, aiming to strengthen its market position and support expansion.
• The bond issuance includes three tranches: EGP 280M with a 6-month tenor, EGP 139M with a 12-month tenor, and EGP 59M with a 20-month tenor, receiving high ratings.
• Souhoola’s first issuance reflects its commitment to financial inclusion under Egypt Vision 2030, with a 52% year-on-year financial growth and a customer portfolio increase of 50% in Q3 2024.

BM Consumer Finance (Souhoola), a consumer finance company, announced the completion of USD 9.6 million (EGP 478 million) securitized bond issuance for Capital for Securitization, according to a company statement. This move strengthens its position in the Egyptian market and supports future expansion.

Expansion Strategy and Financial Goals

Through this issuance, BM Consumer Finance( aligns with its strategy to secure necessary funding to meet customer needs and grow its market share. The bond issuance was managed by CI Capital, a diversified financial services group, which acted as the issuance manager and principal coordinator.

Diverse Tranches and Ratings

The bond was issued in three tranches: the first valued at EGP 280 million with a 6-month tenor and a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The second tranche, valued at EGP 139 million, carried a 12-month tenor and also received a Prime 1 rating. The third tranche, valued at EGP 59 million, with a 20-month tenor, received a rating of A-.

Ahmed El-Shanawany, Managing Director of BM Consumer Finance, expressed pride in the high ratings, emphasizing the issuance’s reflection of the quality of their securitized portfolio. He also noted that the move directly contributes to the company’s market expansion and aligns with its commitment to Egypt Vision 2030, aiming to boost financial inclusion and sustainable growth.

Positive Financial Performance

BM Consumer Finance’s first securitization reflects the company’s robust financial growth. CFO Fadi Elias highlighted a 52% year-on-year increase in financial performance during Q3 2024, with a 50% rise in the customer portfolio compared to the previous year.

Amr Helal, CEO (Sell-Side) of the Investment Bank at CI Capital, expressed satisfaction with Souhoola’s first securitization issuance as part of a three-year program valued at 3.5 billion EGP. CI Capital continues to solidify its reputation in the financial services industry by facilitating notable transactions across various sectors.

Non-Banking Financial Institutions and Growth

Mohamed Abbas, Head of Debt Capital Markets (DCM) at CI Capital, noted that Souhoola’s successful bond issuance underscores the growing interest from non-banking financial institutions to diversify funding sources, which supports the debt market’s sustainable growth in Egypt.

Souhoola, established in 2019, focuses on developing solutions that alleviate economic challenges for individuals while enabling an enhanced shopping experience. The company continues to expand its consumer finance services in line with Egypt Vision 2030.

One US Dollar = 49,69 Egyptian Pound