Barakat, Maher & Partners in association with Clyde & Co advise on securitization bond issuance

Barakat, Maher & Partners in association with Clyde & Co has successfully advised Capital for Securitization on the EGP 718 million securitization bond issuance, split into three tranches, in consideration for the microfinance portfolio of Erada Microfinance Co. (“Erada”).

Barakat, Maher & Partners in association with Clyde & Co has successfully advised Capital for Securitization on the EGP 718 million securitization bond issuance, split into three tranches, in consideration for the microfinance portfolio of Erada Microfinance Co. (“Erada”).

CI Capital acted as the financial advisor, lead arranger and underwriter. Banque Misr acted as the custodian and the Subscription Receiver.

Erada is an Egyptian company established in 2022 and is a partnership between Etisalat by e&, the Subsidiary Fund for Financial Services and Digital Transformation – the affiliate to The Sovereign Fund of Egypt (TSFE), and Mr. Amr Abou El-Azm – who is highly regarded as one of the pioneers of the microfinancing industry in Egypt. The partnership is in line with Egypt’s Vision 2030 of supporting financial inclusion and creating opportunities for the youth through providing innovative financial services and digitally enabled lending products.

The Barakat, Maher & Partners in association with Clyde & Co team was led by partner Mostafa Elsakaa. He was supported by associates Walid Enany, Omar Mahmoud and Mahmoud Toraya, and trainee Karen Gabriel.

Mostafa Elsakaa comments: “Closing this deal before the start of the year was a significant challenge, and it was only made possible through the exceptional collaboration of all parties, particularly the Financial Regulatory Authority (FRA). We are thrilled to represent Erada in this issuance and see it as the first of many, driven by Erada's growing presence in the Egyptian market. This transaction marks the third successful issuance completed by our Cairo office in 2024, and we look forward to continuing to support our clients in 2025.”

As we approach our second anniversary since the opening of our Cairo office in February 2023, our team has established itself as a transactional powerhouse, advising local and international businesses across a wide range of sectors. We have successfully handled complex M&A transactions, including advising on the first merger in Egypt’s private sector insurance industry, as well as handling private equity, anti-trust, competition, regulatory and corporate matters. Our teams expertise also extends to joint ventures (JVs), restructurings, separations and carve-outs, together with initial public offerings (IPOs) and securitization deals including three closings for Capital for Securitization on the mortgage portfolio of Bedaya, the third issuance valued at  EGP 1,780,500,000 on 25 December 2024 and the first two issuances, valued at EGP 843 million on 29 December 2023 and EGP 1,415,500,000 on 10 October 2024. The team has proven capabilities in FinTech, venture capital, artificial intelligence (AI), financial non-banking services. The teams recent appointment as legal counsel to Deutsche Bahn Engineering & Consulting GmbH (DB Engineering & Consulting) in relation to plans to revamp the national railway transportation sector in Egypt demonstrates their expertise in infrastructure projects. The Cairo office is also active in employment, cross-border disputes and arbitration.

With over 30 years of experience in the Middle East and Africa (MEA), Clyde & Co is one of the largest international law firms with over 80 partners and over 540 staff operating through 10 offices and associated offices in Abu Dhabi, Cairo, Cape Town, Dar es Salaam, Doha, Dubai, Jeddah, Johannesburg, Nairobi, and Riyadh. Clyde & Co supports international and local organisations throughout the wider region with a full-service offering of local specialists across most business sectors and services of law, including commercial, commercial disputes, corporate, cyber risk, data protection & privacy, employment & immigration, finance, global recoveries, insolvency & reorganisation, intellectual property, international arbitration, projects & construction, real estate, regulatory & investigations, and technology, outsourcing & data.