Education Sector Raises EGP 2 Billion Through Securitised Bonds
Securitisation allows institutions to bundle future income, such as tuition, and sell it to investors as financial products, giving them instant capital beyond traditional loans.
Egypt’s education sector has raised EGP 2 billion through the issuance of securitised bonds, according to Sherif Samy, Chairperson of NI Capital and former head of the Financial Regulatory Authority (FRA). The financing was arranged through three private educational companies, which sold bond tranches backed by expected tuition fee payments.
Securitisation allows institutions to bundle future income, such as tuition, and sell it to investors as financial products. It’s a way to gain upfront capital without taking on conventional debt, while investors receive returns as the revenue is collected over time.
This latest deal is part of Egypt’s expanding securitisation market. FRA data shows EGP 14.5 billion worth of securitised issuances in Q2 of 2024 - nearly triple what was recorded in the same quarter last year. The model is meant to support long-term growth in sectors like education by unlocking new capital flows. As demand for private schooling rises in Egypt, more institutions are expected to adopt this alternative funding strategy.
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