Cairo – Mubasher: Egypt’s Financial Regulatory Authority (FRA) has allowed the Financial Group for Securitization to issue the first future flow securitisation multi-issuance programme at a value of EGP 2 billion.
The three-year programme will be concluded in favour of Cairo for Investment and Real Estate Development (CIRA), according to an official statement on Wednesday.
The programme’s first issuance shall not exceed EGP 800 million for a period of seven years.
Executive Chairman of the FRA, Mohamed Omran, said the approval represents FRA’s first consent of a future flow securitisation programme and highlights the efforts made to develop financing tools in the Egyptian market.
He further noted that the step comes in light of FRA’s strategy to develop non-banking financial activities (2022-2026) and create new financing tools, reflecting positively on the Egyptian economy.
Last month, the board of CIRA approved the issuance of long-term nominal, tradable, non-convertible securitisation bonds of up to EGP 2 billion.
It is worth noting that in 2020, the securitisation issuance size surpassed EGP 24 billion, whilst in 2021, it totalled EGP 18.8 billion.
