Corporate Leasing Company Egypt S.A.E. (CORPLEASE) completed the first lease-backed securitization in the Egyptian market. Egyptian Securitization Company, an SPV owned by CORPLEASE, issued bonds for L.E. 360 million* backed by a portfolio of 516 lease contracts.

The bonds were rated "AA" by the local arm of Moody?s. Credit enhancement was provided in the form of excess contracts in addition to bank guarantees. Commercial International Bank (CIB) & HSBC Egypt acted as arrangers. CIB acted as advisor, custodian and back-up servicer.

The bonds carry a fixed coupon of 9.75% payable monthly and have an average life of slightly over 2 years. The issue was over-subscribed 4.6 times with total subscriptions of L.E. 1.654 billion. Bankers stated that this is an excellent result considering the turmoil in the global asset-backed securities markets as well as rising domestic interest rates.

CORPLEASE is a leading local leasing and asset finance company. Its main shareholders are Egypt?s CIB, Germany?s DEG and France?s UBAF. The bonds have been registered for Clearing at Misr Clearing Company.

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