EFG Hermes Leasing signs a cooperation agreement with HSBC Bank Egypt to finance Capital Expansions for Small and Medium Enterprises


The agreement supports the Central Bank of Egypt’s push to strengthen SMEs and raise the sector’s contribution to the formal economy

Cairo, Egypt: EFG Hermes Leasing and HSBC Bank Egypt have signed a collaborative agreement that will help small and medium-sized enterprises (SMEs) get access to EGP400 million of leasing and financing services throughout 2019.

The collaboration agreement provides additional support to initiatives unveiled by the Government and the Central Bank of Egypt to boost the SME sector – widely regarded as the backbone of the country’s economy and generate a significant percentage of the nation’s GDP.

The core of the collaboration agreement is to provide SMEs with low interest rate funding, access to medium and long-term financing for capital expenditure and the ability to streamline cash flows.

The signing ceremony at HSBC Egypt’s head office and was attended by Hania Sadek, HSBC Egypt Executive Director and Chief Operating Officer, Helmy Ghazi, HSBC Egypt Managing Director and Head of Global Banking, Ahmed El-Kholy, EFG Hermes Leasing Chief Executive Officer, and Talal Elayat, EFG Hermes Leasing Finance and Treasury Director.

“We are very excited for this opportunity to combine our experience with that of HSBC Egypt to deliver innovative financing solutions for various SMEs in the local market,” said Ahmed El-Kholy, EFG Hermes Leasing Chief Executive Officer. “This agreement comes in line with the CBE’s initiatives and is part of our group-wide aim to grow the contribution of SMEs in our portfolio to 16% compared to the 6% seen in 2017.”

EFG Hermes Leasing launched a dedicated programme in May 2018 to target partnerships with suppliers that facilitate SME financing solutions.

Helmy Ghazi, Managing Director and Head of Global Banking, HSBC Egypt said “This agreement demonstrates our commitment to Egyptian SMEs and our ability to deliver the right mix of products, quality of service and international reach to support SMEs seeking to grow domestically and internationally. The latest HSBC Navigator report for Egypt highlights that 75% of businesses feel confident about success as Egypt’s market dynamics improve and this agreement will help support growth-oriented companies.” PUBLIC

HSBC Egypt had previously launched SME Growth Funds in 2015 and 2016, totaling EGP 600 million, and doubled its balance sheet commitments to SMEs in 2017.

About EFG Hermes:

With a current footprint spanning twelve countries across four continents, EFG Hermes started in Egypt and has grown over 30 years of success to become a leading financial services corporation with access to emerging and frontier markets. Drawing on our proven track-record and a team of more than 4,400 talented employees, we provide a wide spectrum of financial services that include investment banking, asset management, securities brokerage, research and private equity to the entire MENA region. In 2015, EFG Hermes launched the NBFI Platform, EFG Hermes Finance, which will overlook activities in the non-banking finance field through EFG Hermes Leasing, Tanmeyah Microfinance, valU for instalment sale services and EFG Hermes Factoring. This falls in line with the Firm’s strategy to focus on two main pillars: product diversification and geographic expansion into frontier markets, which has seen the firm establish a physical presence in Pakistan, Kenya, Bangladesh, the United Kingdom and the United States.

About EFG Hermes Leasing:

Established in 2015, EFG Hermes Leasing is a wholly owned subsidiary of EFG Hermes that utilizes the firm’s decades of experience across industries and geographies to offer leasing services to high-potential corporations and SMEs across Egypt. The company provides tailored leasing solutions and highly sought-after, value-added advisory to help qualified businesses of all sizes meet their business goals. EFG Hermes Leasing serves as a long-term partner, creating value for clients, vendor partners and parent companies alike by offering unrivalled financial solutions.

About HSBC Commercial Banking:

For over 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC Commercial Banking serves around 1.7 million customers across 53 markets, ranging from small enterprises focused primarily on their home markets through to corporates operating across borders. Whether it is working capital, term loans, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. As the cornerstone of the HSBC Group, we give businesses access to a geographic network covering more than 90% of global trade and capital flows.

About HSBC Bank Egypt S.A.E:

HSBC Bank Egypt S.A.E. was established in 1982 as Hongkong Egyptian Bank S.A.E. and adopted its present name in April 2001 following an increase in shareholding by the HSBC Group from 40% to 94.5%. HSBC Bank Egypt S.A.E. is one of the largest multinational banks operating in Egypt, providing a comprehensive range of banking and related financial services through a network of more than 61 branches and outlets in prominent cities in Egypt.