Egypt - Beltone Leasing and Factoring, a wholly owned subsidiary of Beltone Holding, has signed the first syndicated factoring deal in Egypt worth EGP 925m for Redcon Properties, the real estate development arm of Redcon Group.

The deal aims to provide Redcon Properties with vital financial support to grow its development portfolio. Several leading factoring companies have joined the syndication, contributing EGP 512.5m to the total deal. These include Cairo Lease, Enmaa, Misr Finance, and AUR Leasing. Beltone Leasing and Factoring covered the remaining EGP 412.5m. Banque Misr acted as the escrow bank.

Tarek El Gamal, Chairman of Redcon Properties, said: “This joint factoring deal is of great importance for the real estate sector, as it enables developers to access the proper financing tools to expand their projects. It will help us speed up the construction of the Golden Gate project, a key commercial development in East Cairo. This strategic move shows our commitment to using diverse financial instruments to ensure timely and successful project delivery.”

Ahmed Abdallah, Deputy Chairperson of Redcon Properties, said: “This is the first joint factoring deal in Egypt and a milestone for the real estate industry. We are the first real estate development company to use this non-banking financial tool to finance our projects, paving the way for its use by other companies in the future to support the sustainable growth of the real estate sector. It reflects the confidence of the financial institutions in our financial position, the quality of our projects, and the level of demand. I thank the participating financial institutions for their cooperation in completing the deal in such a short time, and I hope for more collaboration in the future.”

Ahmed Sherif, Managing Director and CEO of Cairo Leasing Company, said: “Cooperating with financial leasing and factoring companies, especially those with financial solvency and technical capabilities, is the best way to finance various customer needs without affecting the risks and solvency of the company. We are working to study the market in all its aspects, understand its financing needs, estimate the expected growth and risks, and provide the necessary financing tools according to the different customer needs. This alliance also supports the real estate development market and the growth of the Egyptian economy in general, which is one of our main goals as we believe in sustainability and development.”

Tarek Fouad El Fayoumy, CEO and Managing Director of Enmaa, said: “We are happy to partner with Beltone Leasing and Factoring, joining the syndication for Redcon Properties. This shows our commitment to serving diverse sectors in the Egyptian market.”

Ahmed Deif, Managing Director of Misr Finance, said: “We are glad to join this first syndicated factoring deal in Egypt to finance Redcon Properties. Along with our partners, we are committed to supporting business growth and providing liquidity to our clients. We look forward to creating more innovative deals with other clients.”

Abdel Aziz El Sherbiny, Chairperson of AUR Leasing and Factoring, confirmed that this syndication is one of the exceptional and innovative financing methods, which positions Non-Banking Financial Institutions as major supporters of the national economy.

Soha Soliman, Managing Director of AUR Leasing and Factoring, stated: “We are glad to be part of this transaction, which falls under the umbrella of finding unconventional solutions to support labor-intensive activities in light of the current economic conditions.”

Amir Ghannam, CEO of Beltone Leasing and Factoring, commented: “The syndicated factoring agreement with Redcon Properties is a testament to our commitment to fostering financial growth and inclusivity. As the first factoring product of its kind in Egypt, this agreement sets a precedent for future developments. We are delighted to cooperate with all the syndicate companies who have joined the transaction and would like to thank them for the professionalism shown throughout the entire process. We look forward to increasing our offerings and syndicating many deals this year to the factoring and leasing market, to enhance engagement with all companies operating in the field and support the market to diversify the portfolios and risks.”

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