Cairo: B.TECH, the leading company specializing in the sale of home and electronic appliances and consumer financing services in Egypt, announced the completion of the offering of the second issue of securitization bonds worth approximately one billion pounds, which were issued in two different tranches with terms, payment priority, credit rating grade and rate of return. The securitization process was assigned to the Commercial International Bank within a two-year short-term bond program with a total value of 5 billion pounds, after obtaining the approval of the Financial Regulatory Authority.
The bonds received a credit rating of P1/P1 (Prime one), as a result of the high quality of the assigned portfolio, which is the highest quality installment portfolio in Egypt, in addition to the guarantees and other credit enhancements available to bondholders. The second securitization process comes in light of a successful strategic partnership. Between B.Tech and the Commercial International Bank after issuing the first offering of securitization bonds worth 1.038 billion pounds at the beginning of this year in three different tranches.
Commenting on this event, Dr. Mahmoud Khattab, Chairman of the Board of Directors and Managing Director of B.Tech He said: “We are pleased with the success of our partnership with the Commercial International Bank in completing the second issuance of the securitization bonds program within a program with a total value of 5 billion pounds, which is a milestone in the company’s journey towards achieving sustainable growth. This issuance reflects the strength of the company’s financial position and the confidence of financial institutions and entities.” Investing in our financial and operational capabilities, it also supports our plans to expand our business and provide new products and services to our customers.” He added that this issuance will contribute to providing the necessary cash liquidity to consolidate B.Tech’s position as a leading company in the field of trade and distribution of home and electronic appliances and consumer financing services, to meet the needs of all customers, and to continue the company’s efforts in exploiting the available investment opportunities.
In this context, Professor Amr El-Ganaini, Executive Vice President and Managing Director of Commercial International Bank – Egypt “The success of this issuance came to confirm the Commercial International Bank’s strategy to support the growth of the Egyptian market, which reflects investors’ demand for debt instruments with distinguished credit ratings and the ability of the Egyptian market to absorb more issuances of securitization bonds, in addition to providing various alternatives to traditional financing structures that may be resorted to.” Many entities, whether private or governmental, expressed his thanks to all parties to the issuance process, which comes after the success of the Commercial International Bank in completing the ninth issuance of securitization bonds with a total value reaching 42.9 billion pounds since the beginning of 2023.
For her part, Menen Awadallah, Head of the Bonds, Syndicated Loans and Debt Markets Group at the Commercial International Bank, said: “We are pleased to continue our successful partnership with B.Tech, in completing the offering of the second issuance of a two-year short-term bond program with a total value of 5 billion pounds.” This reflects our commitment to supporting companies operating in all fields to stimulate the non-banking financial services market and the Egyptian bond market, and to provide flexible investment solutions that attract more investors.”
It is worth noting that the Commercial International Bank played the role of the exclusive financial advisor, issuance manager, arranger, general coordinator and promoter of the subscription, in addition to Ahli United Bank and Al Baraka Investments Company acting as underwriters, and the Arab International Banking Company (SAIB), the National Bank of Kuwait, the Arab Investment Bank and CIB acted as guarantors. Capital participated in the subscription, and the Egyptian Gulf Bank acted as custodian. Al-Derini & Partners Law Firm and Legal Consultations acted as the legal advisor for the offering, and the Office of Muhammad Hilal and Waheed Abdel Ghaffar for Accounting and Auditing (Baker Tilly) acted as the issuance’s auditor.
B.TECH was established in 1997 and is the leading company specialized in selling home and electronic appliances and consumer financing services in Egypt. B.TECH has a strong presence and a large network of branches that exceeds 170 branches throughout the republic. The company offers a variety of financing solutions to its customers, most notably the Mini Cash service, which has greatly contributed to supporting B.TECH’s leadership in the Egyptian market and achieving great popularity among customers. The volume of employment in B.TECH exceeds With more than 6,000 employees, it is the fastest growing company specializing in the trade of home and electronic appliances in Egypt.
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2023-12-17 14:56:59
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