Sarwa Capital assists Amer Group to issue securitized bonds

CAIRO – 4 June 2017: Egypt’s entertainment and real estate developer Amer Group signed an agreement with financial solutions firm Sarwa Capital to issue LE 233 million ($13 million) in securitized bonds, the company said Saturday.

Amer Group said in a statement to the Egyptian Exchange that they issued the bonds on three tranches, rated AA+, AA and A by the Middle East Rating and Investors Services (MERIS).

In Q1 2017, Amer Group results showed a 6 percent slump, as it recorded LE 63.9 million ($3.5 million) in net profit compared to LE 68 million in the corresponding period last year.

The reduction in net profit was attributed to a surge in funding costs, which recorded LE 45.5 million compared to LE 4.78 million in Q1 last year.

Amer Group’s revenues were LE 603 million, up from LE 544.34 million in Q1 2016.