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Egypt car finance firm offers bonds
Egyptian car finance company Contact Securitisation said yesterday it was offering five-year callable bonds worth 392 million Egyptian pounds (Dh260.57 million) with interest variable between 10 and 12.25 per cent.
- Reuters
- Published: 23:31 November 29, 2008
Cairo: Egyptian car finance company Contact Securitisation said yesterday it was offering five-year callable bonds worth 392 million Egyptian pounds (Dh260.57 million) with interest variable between 10 and 12.25 per cent.
The interest would be 25 basis points above the Central Bank deposit rate, which now stands at 11.5 per cent for overnight deposits, but with an upper limit of 12.25 per cent and a lower limit of 10 per cent, it said in an announcement.
Non-convertible
New corporate bond issues are rare in Egypt.
Contact will repay the principal in decreasing monthly instalments over the 60-month tenor of the bonds, starting at 2.97 per cent of the principal every month during the first year and declining to 0.37 per cent a month in the last year, it said. Contact also has the right to repay the principal more rapidly.
The non-convertible bonds cover part of the company's 510-million-pound portfolio of lending to car buyers.
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