التكنولوجيا وأخبارها بوابة مصر لأخبار تكنولوجيا المعلومات والإتصالات وفي أفريقيا كما تعتبر مصدر رئيسي للمعلومات حول تكنولوجيا المعلومات والاتصالات والفرص الاستثمارية المرتبطة بالاقتصاد الرقمي في المنطقة بالكامل
the successful closing of its Third Securitization Bond Issuance worth EGP 182 million
• This third issuance comes as part of the two-year short-
term securitization program worth EGP 2 billion •
Accumulating up to date a total securitized amount of
approx. EGP 0.6 billion • The bond holds a “Prime 1” credit
rating from MERIS, the highest rate in
Premium International for Credit Services “Premium Card”
announced the third issuance of its two-year short-term
securitization program worth EGP 2 billion. The EGP 182
million bond consists of a single 10-month maturity
tranche, backed by a static pool of consumer card
receivables. The bond received from Middle East Rating &
Investors Service (MERIS) the regional Moody’s affiliate, a
“Prime 1” Rating, – consistent with the previous two
issuances – the strongest creditworthiness rating in the
Egyptian bond market. The rating has been based on MERIS
credit assessment, considering the following points: (i)
with 49 thousand individual contracts, the underlying pool
of receivables is highly granular with individual
concentrations not exceeding 0.03%; (ii) the receivables
are backed by signed promissory notes covering the card
limits of the cardholders; and (iii) the significant experience
of the company, the efficiency of its operating systems in
addition to the strict collection and monitoring guidelines
and procedures. The first of its kind in Egypt, the program
was approved by the Egyptian Financial Regulatory
Authority (FRA) in accordance with Law No. (172) for the
year 2018 setting out the rules regarding issuance of Short
Term Debt Instruments (STDI). This third offering was
successfully 100% subscribed by several prominent
institutional investors, namely EFG Hermes, AAIB and EG
Bank, reflecting the market’s confidence in the solid
financial position of the company. Commenting on the
issuance, Paul Antaki, Founder and Chairman of Premium
Card said: “We are proud to have completed our third
securitized bond offering less than five months after
achieving the second issuance. This transaction will solidify
our position in the Non-Banking Financial Services (NBFS)
sector and back-up our ambitious expansion strategy for
Y2020-21 through a number of new innovative FinTech
projects we have in the pipeline. Over the past years, we
have been successful in fostering, a strong and successful
enterprise as a result of our resilient business model and
deep understanding of the market fundamentals”. “With
this regard, the company is launching several new products
and services to support Egypt’s plan to promote citizens’
purchasing and consumption power, particularly amidst the
challenging economic conditions caused by the current
coronavirus outbreak. Looking ahead, while reinforcing its
highly regarded status in the market, Premium Card strives
to maintain a leading role among private sector
institutions, working to enhance financial inclusion across
our national economy”, Paul Antaki added. Rami Antaki, Co-
Founder and member of Premium Card Board of Directors
stated: “We highly believe in the great potential of the debt
market with the introduction of new innovative instruments
– in line with the general direction of The Financial
Regulatory Authority (FRA) – and their attractive cost of
financing providing a cheaper funding alternative. We view
short-term bonds, as the best financing tool for nonbanking
financial companies like us”. Antaki added: “We are
honored to have joined forces again with the reputable and
highly experienced teams dedicated by EFG Hermes, AAIB
and Dreny law firm for this transaction. With this talented
team, we have all together paved the way for the first
short-term securitization, not only the first of its kind from
a tenor perspective, but also the first in the consumer
finance industry. We look forward to continue cooperating
with regards to the remaining issuances of our EGP 2 billion
program”. A consortium of the leading financial, banking
and legal institutions collaborated on this two-year, short-
term securitization transaction. EFG-Hermes and Arab
African International Bank (AAIB) were tapped as lead
arrangers and co-underwriters along with EG Bank. EFG-
Hermes was appointed as sole financial advisor, book-
runner and transaction manager, while AAIB acted as
placement agent and custodian of the transaction. Dreny &
Partners acted as the legal advisor, and KPMG Hazem
Hassan as the financial auditor for the transaction.
