Cairo, November 25, 2024: Today, BM Consumer Finance, a leading consumer finance company, announced the successful conclusion of EGP 478mn securitized bond issuance for Capital for Securitization. CI Capital (CICH.CA), the leading diversified financial services group, acted as the issuance manager and principal coordinator for the transaction.
This move aligns with the company’s strategy to secure the necessary funding to meet its customers’ needs. Through this step, the company aims to expand its financing base and continue providing innovative financial solutions, thereby strengthening its position in the Egyptian market and supporting its future expansion plans.
The issuance includes three diverse tranches: the first valued at EGP 280mn, with a tenor of 6 months, received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The second tranche, valued at EGP 139mn, with a tenor of 12 months, also received a Prime 1 rating. The third tranche, valued at EGP 59mn, with a tenor of 20 months, received a rating of A-
Ahmed El-Shanawany, Managing Director of BM Consumer Finance (Souhoola ), stated that the company’s first issuance receiving distinguished ratings reflects confirms the quality of the portfolio referred for securitization and raises the company’s financing base.
He said, “This step directly contributes to expanding the company’s market share in line with Souhoola ‘s expansion strategy for the coming period. This achievement is part of the company’s commitment to its active role in enhancing financial inclusion, according to Egypt Vision 2030, thereby supporting the macroeconomy and achieving sustainable growth.”
Fadi Elias, CFO at BM Consumer Finance, added that the company’s first securitization is a positive step, and reflects the company’s continuous growth in the consumer finance sector. This is to strengthen the company’s financial position in accordance with the rules and guidelines of the Financial Regulatory Authority.
He highlighted that the company’s financial position saw significant growth of 52% year-on-year in Q3 2024, with the customer portfolio increasing by 50% compared to the previous year, reflecting the success of the company’s strategies in expanding its operations and increasing its customer base.
Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital, expressed his satisfaction with the completion of Souhoola ‘s first issuance since its inception, as part of a three-year program worth a total of 3.5 billion EGP.
He confirmed that CI Capital continues to enhance its position as a leading group in diversified financial services by executing numerous prominent deals across various sectors. He emphasized the considerable efforts made by the Debt Capital Markets team at CI Capital and all parties contributing to the success of the issuance.
Mohamed Abbas, Head of DCM at CI Capital, expressed his gratitude for completing Souhoola ‘s first securitization bond issuance and the growth of the debt markets in Egypt in terms of the number of financing companies executing their first debt issuances with the help of CI Capital. This reflects the increasing interest from non-banking financial institutions (NBFIs) to diversify their funding sources and achieve sustainable growth in the debt markets sector.
It is worth noting that Souhoola, a consumer finance company established in 2019, aims to provide innovative, technology-driven financial solutions that enhance financial inclusion and improve the quality of life for Egyptians. Souhoola focuses on integrating its financial and commercial expertise to develop solutions that alleviate the increasing economic challenges faced by many individuals, enabling its customers to enjoy a seamless and distinctive shopping experience.