Egypt securitization tops LE15.7b

 

Egypt securitization tops LE15.7b  

  Movable assets rise to LE700b

By Ahmed Kamel

The Financial Regulatory Authority (FRA) has approved seven securitization issuances worth LE9.3 billion for leasing, consumer financing, real estate financing and factoring.

Securitization totaled LE22 billion in 2019, up from LE5.3 billion a year earlier, according to FRA data.  The increase has been a direct result of amendments to the country’s capital market law, which has boosted the local bond market in a bid to provide unconventional funding options.

Securitization totaled LE15.7 billion on the January-November period this year, FRA data showed.

Meanwhile, movable assets rose to LE700 billion at the end of November, data from The Egyptian Credit Bureau “I-Score” showed. The World Bank defines movable assets as the main type of collateral that firms, especially those in developing countries, can pledge to obtain bank financing.

Egypt endorsed the movable collateral law in 2015 to regulate the use of movable assets as collateral to get financing in a bid to increase the chances of these firms to obtain adequate funding.

The collaterals include machinery, equipment, cars, inventory, goods and deposits as well as intangible assets like registered patents, trademarks, designs and copyright.