CI Capital Successfully Concludes the First Securitized Bond Issuance Worth EGP 700mn for Reefy Microfinance Enterprise Services

August 8, 2023

CI Capital acted as sole financial adviser, issuance manager, and lead arranger in the issuance.

CI Capital (CICH.CA), the leading diversified financial services group, announced today the successful conclusion of the first securitized bond issuance, worth EGP 700mn, on behalf of The Egyptian Company for Securitization – the originator of Reefy Microfinance Enterprise Services’ portfolio as part of a 3-year program with a total value of EGP 3bn. The issuance was well received by market participants, generating solid investor demand, and the underwriting process was conducted by several prominent banks.

Reefy’s issuance comes in 3 tranches: the first valued at EGP 317mn, with a tenor of 6 months, received a Prime 1 rating from Middle East Ratings and Investor Services (MERIS). The second tranche, valued at EGP 273mn, with a tenor of 12 months, also received a Prime 1 rating. The third tranche, valued at EGP 110mn, with a tenor of 19 months, received a rating of A.

“CI Capital is proud to conclude Reefy’s maiden issuance, part of its 3-year EGP 3bn issuance program reflecting CI Capital’s commitment to play a pivotal role in expanding the breadth and depth of debt capital markets by bringing high-quality new issuers to market, providing competitive financing alternatives to issuers and compelling investment opportunities for fixed income investors. CI Capital continues to solidify its position as the leading diversified financial services group in Egypt; year to date we completed 7 transactions in the debt capital markets space with an aggregate value of c.EGP 22bn,” Commented Amr Helal, Chief Executive Officer (Sell-Side) of the Investment Bank at CI Capital.

“Concluding this issuance is an important milestone in Reefy’s history, as it generates the liquidity necessary to fuel the company’s growth, enhances its financial solvency, lowers financing costs, and enables the company to set competitive prices, which promotes sustainability for both the business and clients, and aligns with the Financial Regulatory Authority’s principles of “Responsible Finance”. Reefy is keen to maintain its growth trajectory especially since the company was ranked among Africa’s 100 Fastest Growing Companies in 2023 as per “Statista” and the “Financial Times”, commented Ahmed Labib, Managing Director and CEO at Reefy Microfinance Enterprise Services.

Established in 2007, Reefy Microfinance Enterprise Services is the first FRA-licensed microfinancing institution in Egypt operating with the sole purpose of lending micro businesses that fall outside the scope of bank financing and serving 170K clients across 21governorates.

“The Financial Regulatory Authority played a vital role in promoting debt issuances as an effective financing tool to generate necessary liquidity, and a key tool for financing the capital cycle of different companies, which results in increased competitiveness, a more inclusive economic climate, and a compelling investment opportunity for investors as well. Reefy’s issuance was covered more than once by several banks, financial services companies, and different asset managers, which reflects investor appetite for debt instruments and the Egyptian market’s ability to promote new issuers,” Commented Mohamed Abbas, Head of DCM at CI Capital.

CI Capital acted as the sole financial adviser, issuance manager, and lead arranger in the issuance, while Banque Misr played the role of underwriter. Matouk Bassiouny & Hennawy acted as the legal advisor and Baker Tilly acted as the issue’s financial auditor.