Egypt's AT Lease to sell $100m in Islamic CMOs
Cairo, June 12, 2010
Egypt's AT Lease is selling up to 570 million Egyptian pounds ($100 million) of Islamic collateralised mortgage obligations (CMOs), the first in Egypt to be split into separate tranches, the issue's arranger said.
AT Lease, a sharia-compliant company with a 1.43 billion pound leasing portfolio, is controlled by the Saudi-based Dallah Al-Baraka Group, said Commercial International Bank (CIB), which is arranging the issue.
The notes are sharia compliant and were approved by AT Lease's sharia board, CIB said.
They are split into tenors of 13 months, three years and five years and will go on sale in a private placement in 10 to 15 days, said CIB's Mohamed Hassan.
'Companies used to do one tranche in one tenor,' Hassan explained. 'These are relatively more advanced and suit a wider investor base,' he added.
The notes securitise 297 contracts with a face value of 680 million pounds and a present value of 599 million pounds. They include leases on vehicles, real estate and machinery and medical and office equipment, CIB said.
The 13-month note carries a 9 per cent coupon, the three-year note a 10 per cent coupon and the five-year note a 11.25 per cent coupon. Each tenor has a different rating. The placement will continue for about one week.
AT Lease began operations in 2006 and has a capital of 100 million pounds.-Reuters