CAIRO: Egyptian car purchase financer Contact on July 7 is selling LE 470 million ($83 million) in bonds securitizing expected car payments, the chief underwriter said on Monday. The bond, Contact's sixth since the company entered the market about 10 years ago, consolidates LE 623 million in receivables whose underlying assets are more than 5,000 automobiles, the underwriter said. "It is the first time for Contact to list this bond in three tranches with different maturities," said Eyad Moustafa of Cairo-based Banque Misr, which won the mandate for the bond. "This will make it suitable for different investors." The subscription will begin on July 11 and continue for 60 days or until it is covered. Some 90 percent of the issue will be sold in a private placement and the other 10 percent to the public through bank branches, Moustafa said. In addition to Banque Misr, Arab African International Bank and Ahli United Bank Egypt have agreed to co-underwrite the bond issue. The issue includes a 13-month LE 178.6 million note with a yield of 9.375 percent, a 37-month LE 216.2 million note with a yield of 10.25 percent and a 60-month LE 75.2 million note with a yield of 10.75 percent. Earlier this month, Egypt's A.T. Lease said it was privately placing up to LE 570 million of Islamic collateralized mortgage obligations (CMOs), the first in Egypt to be split into separate tranches.
