CI Capital (CICH.CA), the leading diversified financial services group, announced today the successful conclusion of the first securitized bond issuance worth EGP 202 million for Blnk Consumer Finance as part of a 3-year program with a total value of EGP 2 billion.
The issuance comes in three tranches: the first valued at EGP 62.2 million, with a tenor of 6 months at a P1 rating from Middle East Ratings and Investor Services (MERIS), the highest credit rating. The second tranche valued at EGP 64.8 million, with a tenor of 12 months, also receiving a P1 rating. The third tranche valued at EGP 75 million, with a tenor of 34 months, received a credit rating of A.
Amr Sultan, Blnk’s Co-Founder and CEO stated, “The issuance’s success, at an early stage in the company’s lifecycle, is a great milestone. The capital raised will further the achievement of our expansion plans, by increasing our client base, enhancing our service offerings, and growing our merchant network.”
“The high demand for the issuance is a testament to investor’s positive outlook for Blnk’s market position, solid balance sheet and innovative, technology-driven, consumer finance solutions,” Added Sultan.
Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital stated, “The conclusion of the third issuance by the company’s investment banking team in a short timespan underscores the company’s capabilities in executing high-profile transactions and further cements our market leadership.”
Khalil El Bawab, Chairman of Misr Capital Fixed Income Brokerage, a CI Capital Holding Subsidiary, added, “New entrants into the debt capital market, especially those from emerging industries such as fintech, have the ability to spur the market towards attracting other players from untapped sectors – which will in turn vitalize both primary and secondary bond markets.”
Mohamed Abbas, Head of DCM at CI Capital stated, “This issuance highlights the opportunity that even newly established companies, can tap into debt issuances to generate the necessary liquidity needed to develop their operations and expand their business. This issuance will initiate a wave of new issuers to the market and generate wider awareness about debt issuances as an available and effective financing tool.”
This marks the third issuance concluded by CI Capital since the beginning of October after the successful conclusion of two securitization bond issuances, on behalf of Tamweel Securitization Company – the originator of Tamweel Mortgage’s Portfolio – and on behalf of GlobalCorp Securitization Company, the originator of GlobalCorp Financial Services’ Portfolio, with an aggregate value of EGP 2.882 billion.
The National Bank of Egypt and Banque Du Caire acted as the issuance’s underwriters, Matouk Bassiouny & Hennawy as legal counsel, Baker Tilly Hilal & Abdel Ghaffar as auditors, the Egyptian Company for Securitization as issuers, and Banque Misr acted as custodian and the subscription reception entity.
About Blnk Consumer Finance
Co-Founded in 2021 by Amr Sultan and Tarek Elsheikh, Blnk is an AI-enabled digital consumer finance platform, licensed by the FRA, that is driving financial inclusion in the Middle East and North Africa through innovative technology solutions. Starting in Egypt, Blnk empowers merchants with an onboarding and instant credit-underwriting technology to provide financing for their customers at the point of sale. Consumers can access Blnk’s services at their favourite shops within Blnk’s merchant network, with just their national ID. In as little as 3 minutes, consumers are provided financing with payment tenors of up to 36 months.
About CI Capital Holding for Financial Investments
CI Capital Holding for Financial Investments is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, mortgage finance, consumer finance, and investment banking products and services. Through its headquarters in Cairo and presence in New York and Dubai, CI Capital Holding for Financial Investments offers a wide range of financial solutions to a diversified client base that includes global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors. CI Capital Holding for Financial Investments leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody, and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital Holding for Financial Investments offers microfinance lending through Egypt’s first licensed MFI, Reefy. The Group has over 2,900 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.