Premium International for Credit Services ‘Premium Card’ announced the third issuance of its two-year short-term securitisation program worth EGP 2 billion.

In an official press release on Monday, Premium Card announced the successful closing of its third securitisation bond issuance worth EGP 182 million.

The EGP 182 million bond consists of a single 10-month maturity tranche, backed by a static pool of consumer card receivables, the statement read.

Like the previous two issuances, the bond received a “Prime 1” Rating from Middle East Rating and Investors Service (MERIS) the Moody’s regional affiliate.

It is the strongest creditworthiness rating in the Egyptian bond market, the statement noted.

The rating is based on a MERIS credit assessment, considering the following points: (i) with 49,000 individual contracts, the underlying pool of receivables is highly granular with individual concentrations not exceeding 0.03 percent; (ii) the receivables are backed by signed promissory notes covering the card limits of the cardholders; and (iii) the significant experience of the company, the efficiency of its operating systems in addition to the strict collection and monitoring guidelines and procedures.

The program, the first of its kind in Egypt, was approved by the Egyptian Financial Regulatory Authority (FRA) under Law No. 172/ 2018 setting out the rules regarding the issuance of Short-Term Debt Instruments.

This third offering achieved a success rate of 100 percent and was subscribed to by several prominent institutional investors, namely EFG Hermes, AAIB, and EG Bank, which reflects the market’s confidence in the solid financial position of the company.