United Finance succeeded in issuing the first securitization with 617.5 million L.E at the highest creditworthiness-rating portfolio

07/11/2023

After The Egyptian Financial Supervisory Authority approval  

United Finance succeeded in issuing the first securitization with 617.5 million L.E at the highest creditworthiness-rating portfolio   

Ashraf El Kady- The Chief Executive Officer and Managing Director The United Bank

• United Finance is non-banking financial arm for UB.
• United Finance received the highest creditworthiness rating needed to securitization.
• The company works within ambitious strategy to achieve the highest growth annual rates.
• An integrated system of non- banking finance solutions to attract investors.
• Encouraging the private sector to increase the social and economic developmental rates aiming to improve the citizen’s life style and reduce unemployment.

Dr. Ahmed El Ghandour- Non- Executive Chairman of United Finance:

• We can rest assured that the company has met all sustainable growth features.
• United Finance has become a key player in the non- banking finance market.
• The non- banking finance companies including United Finance pushes the national economy growth rates, providing investors the ability to grow and maximize their targets, as it grants them fast finance resources for the capital demands especially production equipments.

Maher Abo Steet- Managing Director of United Finance Company:

• United Finance is the only non-banking finance company to possess 4 licenses from the EFSA executing : finance lease- mortgage- factoring- operating lease
• The securitization process took place under the supervision of a number of success partners: financial institutions, banks, financial consultation and accounting companies, and specialized law firms.
• The company aims to increase the paid capital with 100 million L.E to be 400 million L.E in 2024.
• United Finance is distinctive by providing non- banking financial packages for corporates and individuals with innovative features.

Cairo: 7^th of November 2023

United Finance company- the non- banking financial arm for The United Bank- announced the success of the first securitization process issuance with total amount of 617.5 million L.E divided into 3 segments. That was after the approval of the The Egyptian Financial Supervisory Authority (EFSA), the operation coverage ratio was 135% growth. The thing that gives a strong push to the company to execute the economic expansion and qualifying the market with an investment climate, supported by a huge trust among banks, local and international assessment institutions, coming on top MERIS.

United Finance stated that the first issuance of securitization has been divided into 3 segments: the first segment was 617.50 million L.E. furthermore; the other two segments will be added over the coming three years.

The company assured that the creditworthiness came by MERIS Company. As per the quality of the portfolio and supported with technical standards range. As the three segments of the securitization got high credit classification as the following: AA+ for the 1^st segment, AA for the 2^nd segment, and A for the third segment.

Commenting on the success of the first securitization process of United Finance, Ashraf El Kady- CEO and Managing Director, The United Bank said that United Finance strategy, 2024-2028 is based on many axis. Among the most important is the state partnership in maximizing the sustainable development rates.   That is through hard work to get solutions and non- banking innovative finance mechanisms, aiming to attract investments and encourage the private sector to expand in different economic activities either on production or service levels. The thing that positively reflects on increasing sustainable development rates. Therefore, levelling up the national economy to improve the life style of the Egyptian citizen.

El Kady referred to that securitization comes as per an integrated system of mechanisms and creative solutions that aim to the availability of new self-finance resources to the company. This helps the company to accomplish its future expansion goals, through increasing the volume of the portfolio and working on maximizing the annual growth rates. Moreover, opening new horizons to consolidate the capital adequacy standard without demanding additional capital amid the available credit limits from banks reach to 2 billion L.E.

The thing that contributes to support United Finance plans in granting needed finance to different projects either large, medium or small enterprises. The enterprise should abide by all regulations and stated standards from EFSA and should be with good creditworthiness, and with keeping the quality of the credit portfolio.

El Kady expressed his pleasure with the assessment received from international MERIS Company. Which is regarded among the highest granted evaluations to non- banking finance companies, especially with the first securitization process.

From his side, Maher Abo Steet- The Managing Director of United Finance, indicated that the success of the first issuance securitization is due to the professionalism of the work team and their belief in the importance innovating finance mechanisms and solutions to support the investors in expanding their economic activities. The thing that maximize the economic performance of Egypt as per the Egyptian state vision 2030.

The team work participated in the securitization is recognized as the elite profession: Pharos holding company- El Merouj and the key issuance manager- Bekker Telly issuance auditor, MERIS, El Dreny law firm and Banque de Caire subscription receptor. As well as, the Arab Bank, which plays as a custodian does. Moreover, Pharos Holding and National Bank of Egypt, along with Banque de Caire, and International African Arab Bank as insurer to cover subscriptions. Addition to the work team of United Finance and which witness professionalism and proficiency.

Abo Steet said that United Finance is the non- banking financial arm of The United Bank. The company possess 4 licenses from The Egyptian Financial Supervisory Authority (EFSA) to work in four vital economic fields:

• Operating lease- it owns Cairo Center Administration building, which is regarded as a distinctive area within Cairo. It has many international organizations, banks and large companies.
• Finance lease activities.
• Factoring
• Mortgage

Abo Steet pointed that United Finance aims to increase its capital by 100 million L.E. to reach a paid capital of 400 million L.E. there are many cooperation between United Finance and UB: granting co- finance to the customers, providing short, medium, and long run different packages. To help meeting the finance needs of corporates and individuals with the highest professional performance, as per the standards and conditions of The Central Bank of Egypt and EFSA.

 

End.