The profits of Al-Tawfiq Financial Leasing AT Lease increased by 10.4% during the past year to reach 74.2 million pounds, compared to a net profit of 67.2 million pounds during the previous year 2019, taking into account the rights of the minority shareholders.
While the company’s revenues declined during the past year 2019 to reach 514.5 million pounds, compared to total sales of 523.8 million pounds in the previous year.
The total profit increased during the same period to 162.1 million pounds, compared to 144.9 million pounds in the same period in 2019.
Direct financing expenditures recorded an amount of 351.1 million pounds in 2020, compared to 377.6 million pounds in 2019. While the share of profits reached 0.54 pounds, compared to 0.49 pounds in the comparative period in 2019.
Tariq Fahmy, CEO and Managing Director of Al-Tawfiq Leasing Company, revealed that the company had completed the second issue of securitization bonds, part of its portfolio, at a value of LE 1.087 billion.
He pointed out that the company will use the proceeds of the securitization process to strengthen the company’s financial position as well as support future growth plans and maximize profitability and return on property rights.
Misr Capital, the investment arm of Banque Misr, played the role of the issuance manager, financial advisor, salary and promoter of the main issue, and the guarantor of the underwriting of the second issue of the company.
Fahmy clarified that the issuance is secured by a forward-looking portfolio of financial lease contracts transferred from Al-Tawfiq Financial Leasing Company.
Banque Misr played the role of arranger and promoter of the issue, in addition to which Banque Misr, Misr Capital, Suez Canal and Commercial Bank, and Wafa Bank Egypt guaranteed coverage of the issue.
Banque Misr also received the subscription and the role of the custodian, the ALC office played the role of legal advisor for the issuance, and the office of Professor Waheed Abdel Ghaffar and Co. «Baker Tilly» as the auditor.
Fahmy mentioned that the door to subscribe for the issue was closed on Monday, February 1, 2021, and several banks subscribed for the issue, the most important of which are Banque Misr, Suez Canal Commercial Bank, Wafa Bank Egypt, United Bank and Arab Banking Corporation.
He added that the issuance is divided into 3 segments with different terms with a variable return linked to the one-night loan return rate announced by the Monetary Policy Committee of the Central Bank of Egypt, in addition to a margin, provided that the pricing is reviewed every meeting of the Monetary Policy Committee.
The three tranches received an outstanding credit rating of AA +, AA and A from the Middle East Credit Rating and Investor Service Company (MERES).
“Fahmy” pointed out that the first tranche with a term of 13 months worth 267 million pounds will be consumed monthly and received an AA + rating, and the second tranche with a term of 37 months with a value of 705.4 million pounds, and will be consumed monthly after the end of the first tranche or before that in light of the actual proceeds and has received an AA rating. , In addition to the third tranche, with a 48-month term, valued at 114.6 million pounds, and it will be consumed monthly after the completion of the second tranche or before that in light of the actual proceeds and has received a rating of A.
Fahmy pointed out that obtaining the second issue of this classification reflects the success of the company’s board of directors and the executive management and its strategy over the past years in building a high-quality portfolio that has made it always among the major companies in the financial leasing industry in Egypt.
Al-Tawfiq Leasing Company owns 99.9% of Al-Tawfiq Securitization Company.
The article “Al-Tawfiq Leasing” profits EGP 74.2 million during 2020, with a growth of 10.4%. It was written in Al-Borsa newspaper.