The Arab African International Bank (AAIB) has been on the frontline of a securitisation transaction worth EGP 6bn as an advisor and lead advisor. This momentous transaction has been issued by the Tameer for Securitization Company for a portfolio of receivables originated by the New Urban Communities Authority.
Noteworthy, this has been the biggest securitisation in the local debt capital market thus far. The AAIB has been one of the lead arrangers of this milestone transaction, the signing of which was finalised in July 2019, with a share of EGP 2bn. This transaction was done in collaboration with the National Bank of Egypt, the Commercial International Bank, and EFG Hermes.
A securitisation transaction is a debt capital market financial instrument whereby future receivables are converted into financial securities which can then be listed and traded on the stock exchange.
The Vice Chairperson and Managing Director of AAIB, Sherif Elwy, stated that “securitisation transactions are vital financial tools as they allow the diversification of financing sources for a certain tier of clients including real estate developers and consumer finance companies amongst others.”