Regulatory Alerts2016-01-01
Capital Market Authority Board Resolution No. 22 of 2016 Regarding Regulations for Issuing Bonds Secured by an Independent Portfolio of Financial Rights
The Egyptian Capital Market Authority issued Resolution No. 22 of 2016 to establish the regulatory framework for joint-stock companies to issue bonds secured by an independent portfolio of financial rights. The resolution mandates strict eligibility criteria for issuers, including minimum portfolio values, independent credit ratings, and specific collateral requirements for real estate and movable assets. It further outlines comprehensive disclosure obligations, the final transfer of the portfolio upon subscription coverage, and the fiduciary duties of the custodian bank to protect bondholders' interests.
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