BM Lease in talks over EGP 500 mln loan with four banks

Egypt’s BM Lease Company is in negotiating with four local banks to borrow 500 million pounds, the firm’s CEO revealed.

The loan will be used in 2019 and will cover several sectors such as food, industrial, and commercial, Hesham Sheta told Mubasher.

BM Lease will sign an 25 million pounds loan with the micro, small, and medium Enterprises (MSME) authority, the top official said, noting that this is the first deal with the government body.

The company will receive the loan on several instalments, Sheta revealed, explaining that the sum will be used to finance SMEs in the industrial and commercial sectors.

Since the start of 2018, BM Lease has received around 1 billion pounds in financing and used 750 million pounds of them in the industrial and commercial sectors as well as in the beverage sector in the nine months to September.

The remainder of the figure will be used between October and December 2018, he told Mubasher.

Sheta did not reveal the names of the banks the company was in talks with.

Earlier this month, the Financial Supervisory Authority’s chairman Mohamed Omran said that the value of consumer financing in Egypt amounts to around 70 billion pounds.

Founded in 2017, BM Lease Company has an authorised capital 500 million pounds and paid in capital of 100 million pounds.

The compny’s shareholders include Banque Misr, Tahia Misr Holding for Financial Investments Company, Misr Capital Investment Company, and Misr Insurance Holding Company.