Dr. Mohamed Omran the Chairman of the Financial Supervision Authority said on Sunday, that the authority approved for the first time a license to offer seven issues of securitization bonds , with a total value EGP 10 bln for five securitization companies.
Meanwhile, Omran explained that the capital market is also witnessing more two securitisation bond issuances with a total value of EGP 12.5bn, with the guarantee of financial rights portfolios of real estate development activities.
The volume of securitization bond issuances during the current year amounted to about EGP 15.7bln until November 2020, and it is expected to reach nearly EGP 25bln by the end of this year, an increase of 14% from the previous year.
In addition, the annual indicators of securitization bonds are witnessing a remarkable development starting from 2019, following the amendments made to the Capital Market Law No. 95 of 1992 that led to the recovery of the bond market to provide an unconventional alternative of financing for companies.
Financial Supervision Authority
On other hand, The total of securitisation bond issuances exceeded EGP 22bn in 2019, compared to only EGP 5.3bln in 2018. Noteworthy, the FRA agreed the second issuance worth EGP 500m of a short-term bond programme, amounting to EGP 2bln, to finance the working capital of a securities brokerage company.
Follow the latest news on Google News
