Informed sources told Daily News Egypt that a financial services company considers establishing an investment fund for movable collaterals, with a value of more thanEGP 1bn, before mid-2021. The target value of the fund will be finally determined after the completion of studies on the fund at the beginning of 2021.
In a related context, Ayman Al-Sawy, head of the financial sector at Sarwa Capital, said that his company intends to establish a EGP 2.5bn movable collateralsfund during the first quarter (Q1) of 2021.
He pointed out that the incorporation procedures have reached advanced stages and the company is currently working with the Financial Regulatory Authority (FRA)to develop the taxation and accounting aspects of the fund, given its new nature in the market.
The FRA launched the electronic movable collaterals registry in March 2018. The increased demand for establishing movable collaterals funds comes in light of the Authority’s amendments No. 98 of 2020 issued on 23June.
The amendments stipulated that the FRA may license investment funds and companies that may engage in the activity of investment funds on their own or with other bodies to operate in the movable collaterals market.