Newly-launched Global Lease Company kicked-off legal and administrative procedures to authenticate increasing its paid capital to EGP 50m from EGP 15m, said Chairman of Global Lease Maged Helmi.
Global Lease will increase its issued capital to EGP 100m by the first half (H1) of 2016; and its paid capital will be gradually raised to EGP 100m by the end of 2016, he added.
Helmi, who is also the Managing Director of Wadi Degla Holding Co., noted that the company provides financing to the food, transportation, and real estate development industries. This entails giving investors financing, not to build housing units but to construct units serving administrative, commercial, and entertainment purposes.
With 135 years of financial expertise in total, Global Lease staff has 85 years experience in financial leasing between them, he said.
Managing Director of Global Lease Hatem Samir said the company has concluded EGP 50m contracts before the SANAD Fund, affiliated to KFW Development Bank, which entered into a partnership with the Egyptian conglomerate Wadi Degla Holding, after which an additional EGP 100m in deals were signed by the end of August.
Last month, Global Lease obtained funds worth EGP 200m from other banks, he said, noting that the company is negotiating with another four banks to get EGP 600m.
The company set out segments for projects eligible for financing, with micro enterprises receiving funding ranging from EGP 100,000 to EGP 500,000, small enterprises from EGP 500,000 to EGP 5m, and medium-sized projects receiving no more than EGP 10m, with multinationals receiving no more than EGP 100m, he illustrated.
Global Lease has a strategy for choosing clients who have the creditworthiness targeted by the company, upon reviewing their feasibility studies prepared by the credit and research department at the company. With the aim of reducing risks to a minimum, the company’s flexibility permits managing risks and keeping up its assets and portfolios through distributing assets evenly in its portfolio, he said.
The company, which finalised 90% of its labour structure, studies projects proposed by clients and provides advisory services with the aim of meeting feasibility targets set by each party, he noted.
In cooperation with the SANAD Fund, Wadi Degla Holding Co. announced the establishment of Global Lease last August. Stakes in Global Lease are distributed as follows: 68% of shares owned by Wadi Degla, 30% by the SANAD Fund, and the remainder by other shareholders.