EFG Hermes Factoring in negotiations with foreign funders to get financings

Thursday 27 September 2018 02:29 PM


By Mona Abdel Bary:
EFG Hermes Factoring, affiliated to the EFG Hermes, a leading financial services corporation serving MENA and Frontier Emerging Markets, is initiating its operations today in the local market. Also, the factoring firm is to conduct negotiations with international institutions to obtain financings in preparation for launching activity early in 2019.

CEO of EFG Hermes Factoring Fatma Lotfy said that there are negotiations with 4 funders including European Bank for Reconstruction and Development (EBRD) and German Society for International Cooperation (GIZ) to obtain funding in foreign currency with the purpose of financing the firm’s customers, mainly exporters, giving no further details.

The available financing portfolio until year end ranges from EGP 300mn to EGP 400mn. It includes credit lines granted by 3 banks, she explained, adding that 50% of financings will be allocated for exporting customers and the remainder will be allocated for local customers.

Lotfy stated that the company’s IT infrastructure is being completed, and is expected to be finalized by November.
“The Egyptian factoring industry is fairly young with only a handful of players offering varying degrees of service depth and comprehension”, Lotfy said in previous statements.