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Global Lease negotiates with four banks to fund new projects worth EGP 500m - Daily News Egypt

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Global Lease negotiates with four banks to fund new projects worth EGP 500m

Discussions with FMO to borrow $10m, a factoring company to be launched mid-March


Global Lease for financial leasing is currently negotiating with four local banks in order to increase its funding portfolio by EGP 500m over the next couple of months.

Hatem Samir, the company’s CEO, told Daily News Egypt that Global Lease has obtained loans from 14 banks worth EGP 3bn in order to fund projects in all sectors. It is negotiating with four banks in order to increase its funding portfolio for projects to take it up to EGP 3.5bn.

He added that the banks the company is negotiating with include Attijariwafa Bank and the United Bank. He also noted that there is an increase in the funding allocated by Banque Misr.

Samir also explained that Global Lease signed 300 contracts to fund 110 clients for EGP 2.5bn till the end of last year. It targets signing 250 contracts this year for 100 clients, worth EGP 1.5bn-2bn.

Moreover, he said that the company’s portfolio comprises of 30 activities, including real estate investment, construction, food and beverages, new and renewable energy, feed and poultry, petroleum services, paper and carton printing, transport services, as well as communications and IT.

The company is keen on maintaining a kind of diversity in the portfolio, in terms of the activities and the allowed concentration percentages in each activity according to the credit policy approved by the company.

He said that the company is seeking to expand its investment portfolio and will focus on funding projects in the sectors of food and beverages, as well as medications and health care during 2019. It is targeting 20 clients in the first quarter of this year in order to provide funding worth EGP 400m.

Furthermore, Samir stressed that the company is planning to enter negotiations with international funding institutions to obtain dollar loans to fund companies which require a dollar funding.

He revealed that there are negotiations taking place with the Netherlands Development Finance Company (FMO) to fund projects in the industrial sector worth $10m. There are still discussions regarding the conditions for the use of the funds, as well as other details which there will be agreements on.

Samir said that Global Lease obtained a licence from the Financial Regulatory Authority in order to establish a factoring company. The company will start its activity by mid next month with a capital of EGP 50m.

Global Lease is one of the companies which has recorded a rapid growth in a short period of time since its establishment in 2015 in the field of financial leasing. Its shareholders include Goldman Egypt, which is affiliated to Ezdehar Fund (60%), and the Sanad Fund for SMEs which is affiliated to the KfW (30%), in addition to 10%, which is the share of the CEO and managing director of the company.

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https://dailynewssegypt.com/2019/02/11/global-lease-negotiates-with-four-banks-to-fund-new-projects-worth-egp-500m/
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