Contact successfully closed its forty fifth securitization issuance worth EGP 1.2 billion

Contact Financial Holding (“Contact”), Egypt’s leading non-banking financial services provider, announced the closure of the forty-fifth issue of securitization bonds issued by Sarwa Securitization and backed by a consumer finance portfolio generated by Contact Credit, its subsidiaries, and sister companies, with a total value of EGP 1.214 billion divided into 3 tranches with different maturities ranging from 13 to 60 months. Notably, this securitization bond issuance marks the second issuance by the company in the current year.

The issuance was underwritten and subscribed to by major financial institutions, with Contact Financial Holding taking on the roles of issuance manager, promoter, and underwriter. Ahly bank of Kuwait, Commercial International Bank, CI Capital, and Al Ahly Pharos also acted as transaction underwriters, while Al Ahli Bank of Kuwait – Egypt, and Commercial International Bank acted as a major subscriber along with several money market funds. Arab African International Bank acted as custodian and placement agent. Legal counsel was provided by Ali El Din Weshahy (ALC) and KPMG served as the financial auditor for the securitization process.

The bond tranches received AA+ credit rating, AA and A by Middle East Ratings and Investors Service (MERIS). The underwriting portfolio of the issue amounted to about EGP 1.895 billion, this portfolio received one of the highest credit ratings for consumer finance portfolios guaranteeing securitization bonds in the Egyptian market to date, reflecting the quality of the Contact’s portfolios. Including this issuance, the value of the bonds issued in the Egyptian market backed by portfolios generated by Contact is approximately EGP 30 billion through 29 bonds.

Mr. Said Zater, CEO of Contact Financial Holding, commented on the issuance, stating, “We are proud to have successfully concluded the forty-fifth securitization bond issuance, which underscores our resilience in navigating economic headwinds, including the substantial interest rate hikes observed throughout the year. This achievement reflects the strength of our strategic approach and the efficiency of our team, which continues to provide innovative and flexible financial solutions that meet our clients’ needs in uncertain times. Furthermore, this issuance highlights the market’s confidence in our credit portfolios, which are backed by strong credit ratings, and demonstrates the strong demand from both banking and non-banking financial institutions in investing in these bonds, reaffirming the robustness of our consumer finance portfolio.”

Said Zater has emerged as one of the most prominent leaders in the non-banking financial services sector in Egypt and the Middle East. Since contributing to the establishment of Contact Financial Group in 2001, Zater has played a pivotal role in its remarkable growth. Over the past five years, under his leadership as Managing Director of Contact Financial Holding and CEO of the group since 2020, the company has experienced unprecedented expansion.

Zater is also the visionary behind the creation of Egypt’s first Consumer Finance Federation, where he was elected as its inaugural president in 2021. He continues to serve in this role, playing a pivotal and distinguished part in organizing the consumer finance market, which has seen significant growth and prosperity in recent years.