Cairo: Contact Financial Holding (“Contact"), Egypt's leading non-banking financial services provider, announced the closure of the forty-third 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 1.4 billion divided into 3 tranches with different maturities ranging from 13 to 60 months. Notably, this securitization bond issuance marks the fourth such issuance by the company in the current year, bringing the total value of securitization bonds issued by Contact Financial Holding in 2023 to EGP 6.6 billion.

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. Concurrently, Arab African International Bank Banque Du Caire, Ahli United Bank, and Al Ahly Pharos acted as transaction underwriters while ABC Bank acted as co-underwriter. Arab African International Bank acted as custodian and Banque Du Caire took on the role of 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 have received AA+ credit rating and AA and A by Middle East Ratings and Investors Service (MERIS), and the underwriting portfolio of the issue amounted to about EGP 2.3 billion, this portfolio has 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 27.3 billion through 27 bonds.

Mr. Said Zater, CEO of Contact Financial Holding, expressed his pride in the successful closure of the forty-third securitization bond issuance, stating, “We take great pride in the successful completion of this issuance. The strong interest shown by investors from both banking and non-banking financial institutions in our portfolio underscores the substantial trust placed in the consumer finance portfolio generated by our companies. Such confidence drives us to pursue continuous progress. relatedly, we are currently in the process of preparing for a new Sukuk issuance, with an estimated value of approximately EGP 2 billion, slated for the first quarter of 2024. Our dedication remains unwavering in providing the best opportunities and services to investors and society as a whole."

About Contact

Contact Financial Holding (Egyptian stock code CNFN,CA) is a leading group in providing non-bank financial solutions and services, managing a group of companies that provide a full range of financing and insurance products and services. Contact adopts an innovative approach to ensure the provision of its services of the highest quality in the fields of finance and insurance, with the easiest process to reach a wide segment of the market.

Through Contact Credit, Contact offers various financing programs to finance the purchase of new and used cars and vehicles, durable goods financing programs, in addition to home finance and finishing programs through Contact Mortgage and trade finance programs through its sister companies Contact Leasing and Contact Factoring. Contact also provides insurance services through Sarwa Insurance and Sarwa Life Insurance. The company is also the first and largest issuer of securitization bonds in various fields in the Egyptian market. Contact Financial Holding Company LLC. Is licensed and regulated by the Financial Regulatory Authority.