Egyptian FRA to approve 11 new securitized bonds with a total value of 11.5 billion by end of 2021 – Markets & Business – Business


President of FRA Mohamed Omran. Al Ahram

Securitized bonds are a popular medium that exists in the Egyptian market, which focuses on debt financing; particularly in real estate and consumer credit companies, backed by a portfolio of financial assets.

In 2021, FRA approved 15 securitized bonds with a total value of over 10 billion in various financing activities, according to Omran.

Leasing companies acquired 54% of approved securitized bonds, mortgage companies 34%, while consumer finance companies accounted for 12% of approved bonds, Omran explained.

On the other hand, FRA finalized the registration procedures for three new companies with a total fair value exceeding EGP 5 billion, which paves the way for these companies to be listed on the Egyptian Stock Exchange (EGX ) before the end of 2021, according to Omran. .

One of these companies operates in the health sector, another works in agro-industry and environmental services, while the last one specializes in the field of subcontracting.

“These approvals are part of FRA’s strategy for non-financial activities (2018-2022) which aims to provide a variety of funding resources for already registered companies working in the mortgage fields, leasing and consumer finance, in addition to companies that engage in the micro-finance business, ”Omran said.

He also highlighted recent amendments to Egyptian Capital Market Law No. 95 for 1992 which have helped to refresh the bond market in Egypt.

In November, the FRA approved a draft amendment to a number of rules governing bonds, securitized bonds and sukuk in the domestic capital market.

The amendment added four new financing instruments to be adopted in the capital market, including social bonds, sustainability bonds, environmental, social and governance bonds, and bonds for gender equality and empowerment of women.

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