Cairo - October 22, 2024: Beltone Holding ("Beltone") announces that its wholly owned subsidiary, Beltone Leasing and Factoring, has successfully completed its first securitization issuance, raising EGP 1.33 billion.
Beltone Investment Banking’s Debt Capital Markets Division acted as the Financial Advisor, Issuance Manager, and Bookrunner. The significant oversubscription of 1.5x is a clear testament to Beltone’s robust financial management and its ability to tap into Egypt’s evolving capital markets, attracting a diverse range of investors.
The bond is split into three tranches. Tranche A is valued at EGP 164 million, with a tenor of 12 months, and rated AA+ by Middle East Rating and Investors Service (MERIS). Tranche B is valued at EGP 945 million, with a tenor of 36 months, and rated AA by MERIS. Tranche C is valued at EGP 224 million, with a tenor of 48 months, and rated A by MERIS.
Amir Ghannam, Deputy Head of NBFIs for Leasing, Factoring, and Consumer Finance at Beltone, remarked, “This securitization demonstrates not only the resilience of our portfolio but also the trust investors place in our vision for growth in Egypt’s non-banking financial services. The 1.5x oversubscription further emphasizes such confidence in our ability to manage a robust and high-performing portfolio. This successful transaction not only highlights our strength but also unlocks new capital streams that will propel our future growth and innovation, driving us to set new benchmarks in the industry.”
Sherif Hassan, Group Treasurer and Managing Director of Debt Capital Markets at Beltone, added, “The successful conclusion of this issuance marks an important milestone for Beltone Investment Banking, showcasing our commitment to reshape the financial landscape. As we embark on this journey into the Debt Capital Markets, we are unleashing a wave of innovative financial instruments to transform the market and deliver tailored solutions for our clients that drive growth.”
The transaction parties included the National Bank of Egypt, serving as the custodian for the transaction; Al Ahly Pharos, acting as the arranger; and First Abu Dhabi Bank Misr (FABMISR) as the co-arranger. The underwriters included the National Bank of Egypt, First Abu Dhabi Bank Misr (FABMISR), Banque Du Caire, and Suez Canal Bank, with the Industrial Development Bank participating as a subscriber. Dreny & Partners provided legal advisory, while KPMG served as an external auditor.
Beltone Investment Banking, a wholly owned subsidiary of Beltone Financial Holding, is a regional one-stop-shop for advisory and capital raising. With a team of skilled professionals who have accumulated critical knowledge and expertise from dealing with leading regional and international investment banks, Beltone Investment Banking has successfully executed deals totaling EGP 122 billion across local and regional markets, with regional mandates that capitalize on high-growth sectors.
Beltone Leasing and Factoring, a subsidiary of Beltone Holding, specializes in providing leasing and factoring solutions and services. The company holds a leading position in the Egyptian leasing and factoring market, owing to its strong contribution to delivering innovative financial solutions to small and medium-sized enterprises as well as large companies across strategic sectors. These sectors include real estate development, logistics support services, transportation, healthcare, education, pharmaceuticals, food and beverages, printing and packaging, chemicals, and oil.
Beltone Holding (Egyptian Stock Exchange Code: BTFH.CA) is a leading provider of financial services with a distinguished track record spanning decades in the Middle East and North Africa. The Company offers a comprehensive and expanding range of financial solutions and services, including securities brokerage, underwriting and advisory services, asset management, research, and direct investment, as well as non-banking financial services such as leasing, factoring, consumer finance, venture capital, microfinance, real estate finance, and small and medium-sized enterprise (SME) financing. The company has an ambitious vision to revolutionize the financial sector in the region, leveraging the global expertise and knowledge of its team to provide innovative, value-added solutions, create additional opportunities for its clients, enhance market value, and achieve impactful results.