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CI Capital, a leading diversified financial services group, has completed an EGP 883 million securitization issuance backed by an EGP 1.05 billion transferred portfolio for Capital Securitization, with BM Consumer Finance “Souhoola” acting as the originator and portfolio creator.

Two-tranche issuance

The transaction comprises two tranches. The first is valued at EGP 700 million with a 12-month maturity, while the second is worth EGP 183 million and has a 22-month maturity.

The first tranche received a “Prime 1” credit rating, the highest rating, while the second was rated “A-” by MERIS – Middle East Rating & Investors Service.

Souhoola highlights growth plans

Ahmed El-Shennawy, Managing Director of BM Consumer Finance “Souhoola,” said the transaction marks another step in the company’s growth and demonstrates its ability to use different financing instruments to support business expansion and meet customer needs.

He added that the increase in issuance value compared with the previous transaction reflects continued growth in the size and quality of Souhoola’s portfolio, as well as its ability to build a strong and sustainable funding base aligned with its plans for the coming period.

Souhoola will continue expanding its customer base, growing its financing portfolio and offering more flexible and efficient financing solutions to support financial inclusion and the growth of Egypt’s consumer finance sector.

Diversifying funding sources

Fady Elias, Chief Financial Officer of Souhoola, said the transaction reflects the company’s performance in the past period, particularly the higher issuance and transferred portfolio values compared with the previous deal.

He said diversifying funding sources is a key pillar of Souhoola’s strategy, allowing the company to expand while maintaining a balanced funding structure that supports its long-term growth objectives.

Elias added that the strong ratings assigned to the tranches indicate the quality of the portfolio and market confidence in Souhoola’s business model.

Souhoola’s third issuance

Amr Helal, Chief Executive Officer of Sell-Side Investment Banking at CI Capital, welcomed the completion of Souhoola’s third issuance, highlighting CI Capital’s continued role in executing transactions across various sectors.

He also praised the efforts of CI Capital’s Debt Capital Markets team and all parties involved in completing the transaction.

Supporting Souhoola’s access to debt markets

Mohamed Abbas, Head of Debt Capital Markets at CI Capital, said the transaction represents another successful milestone in Souhoola’s issuance program and adds to the company’s track record of transactions completed with CI Capital.

He reaffirmed CI Capital’s commitment to supporting Souhoola’s financing objectives and strengthening its access to debt markets.

Liquidity to expand the financing portfolio

Ahmed Haidar, CEO of Al Ahly Pharos for Investment Banking, said the transaction provides Souhoola with liquidity to expand its financing portfolio and customer base.

“We look forward to continuing to support the company’s future plans and building on this success through further cooperation,” he said.

Ahmed Ayman, Head of Debt Capital Markets at Al Ahly Pharos, said the transaction demonstrates the role of securitization as an effective tool that enables consumer finance companies to convert portfolios into liquidity to support new financing and continued growth.

CI Capital and Al Ahly Pharos advise on transaction

CI Capital and Al Ahly Pharos acted as financial advisors, arrangers, general coordinators, issue managers and bookrunners for the transaction. Baker Tilly served as financial auditor, while Matouk Bassiouny & Hennawy acted as legal advisor.