With 305 million pounds
The United Bank issues a letter of guarantee for the first securitization process for the benefit of Nasr City for Housing and Development company
Cairo, January 22, 2020
Ashraf El Kady- Chairman of The United Bank announced the issuance of the necessary letter of guarantee for the securitization process for 305 million pounds for the benefit of Nasr City for Housing and Development company, as part of the ongoing efforts of The United Bank to support Egyptian companies and maximize their financial capabilities and to open new horizons for investment in the Egyptian stock and financial markets.
In response to the issuance by The United Bank to the letter of guarantee for the first securitization process for the benefit of the Nasr City for Housing and Development company, Ashraf El-Kady says that providing financial liquidity with innovative mechanisms comes within the strategy of The United Bank to activate the growth of the Egyptian economy and support all financial, industrial and productive sectors in accordance with the Egyptian vision 2030.
Ashraf El-Kady indicated that the real estate securitization is one of the important mechanisms of the financial sector and economic entities, especially real estate, which have large debts with their clients. With the length of collection period and the need for investment expansion, companies resort to the process of securitization in exchange for obtaining the necessary instant financial liquidity as one of the alternative solutions for financing or bank loans.
Banking facilities and services from The United Bank
Ashraf El-Kady indicated that on the sidelines of the securitization process, The United Bank provides a package of financial and banking services to individuals from Nasr City Housing and Development customers, including: The ability to pay bank installments via the UB digital wallet or through the online banking service or ATMs, which operates 24/7. As well as a variety of distinct credit cards, which are also used to pay installments such as: Rakhaa Card, the first credit card that is compatible with the provisions of Shariaa.
Custodian of the securitization of Nasr City for Housing and Development company
Ashraf El-Kady said that The United Bank will be responsible for the process of keeping the papers related to the securitization process for the benefit of the Nasr City Company for Housing and Development. And that is through the activity and service of the custodian who will submit a monthly report on the quality of the guarantees related to the rights of the company, customers and The United Bank.
Securitization is a less expensive mechanism
Nevine Kashmiry - Deputy Managing Director of The Business Sectors - Financial and Investment Sectors, pointed out the necessity of activating the securitization mechanism to check the liquidity needed for companies and the payment through securities as a less expensive alternative for companies, especially those working in the field of real estate investment, to renew the necessary liquidity for them and keep pace with urban expansion plans. And this without the need to borrow from financial institutions.