Souhoola raises $17M in third securitization issuance
What's the deal? Egyptian consumer finance firm BM Consumer FinanceDealroom has a profile for this one. Try Dealroom →, which operates under the brand SouhoolaDealroom has a profile for this one. Try Dealroom →, closed its third securitization bond issuance worth 883 million EGP (about $17 million). CI CapitalDealroom has a profile for this one. Try Dealroom → and Al Ahly PharosDealroom has a profile for this one. Try Dealroom → led the transaction as financial advisors, arrangers, and lead managers.
How it's structured: The issuance came in two tranches, backed by a receivables portfolio valued at 1.05 billion EGP. Tranche A raised 700 million EGP over 12 months with a Prime 1 rating from Middle East Rating & Investors Service (MERIS)Dealroom has a profile for this one. Try Dealroom →; Tranche B raised 183 million EGP over 22 months, rated A-.
What's the endgame? Souhoola wants to diversify its funding, add liquidity, and grow in Egypt's consumer finance market. The securitization converts existing consumer portfolios into immediate capital, letting it keep originating new loans.
Why now? Managing director Ahmed El-Shanawany said the upsized issuance, larger than previous rounds, reflects "robust portfolio growth" and the capital base needed to meet rising customer demand and advance financial inclusion.
In their words: Chief financial officer Fadi Elias said tapping debt capital markets is essential for a "balanced funding structure." Baker TillyDealroom has a profile for this one. Try Dealroom → served as auditor, and Matouk Bassiouny & HennawyDealroom has a profile for this one. Try Dealroom → acted as legal advisor.
The signal: Recurring securitizations are becoming a standard funding tool for Egyptian consumer lenders looking to scale beyond bank credit. For Souhoola, a third, larger issuance points to steady demand for consumer finance in a market pushing financial inclusion.
Read more: technotime.net
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