The CEO of Archer Financial Advisors, Mohammed Nader, has revealed that his company is sourcing $135m for a group of local investors in the navigation sector to create a dock for ship repair overlooking the Red Sea.
Nader told Daily News Egypt that $65m of the funding will be sourced from various investors, including some based abroad. Negotiations are being conducted with investors from the Gulf to secure this aspect. Archer is also in talks with several banks to raise the remainder of the project cost.
Nader said the investments in the project are in dollars because the necessary equipment to establish the dock will be imported.
Nader also revealed the final structure of the shareholders of the financial leasing company under construction and said they are currently acquiring the necessary approvals for its establishment with a capital of EGP 50m. This will come from the Egyptian Financial Supervisory Authority (EFSA) after getting the approval of the Central Bank of Egypt (CBE) because of their contributions in the company.
The shareholder structure is divided between 20% owned by the Egyptian Gulf Bank (EGB) and 20% by Egyptian Gulf Holding for Financial Investments (EGHFI). He said another 20% will be owned by Misr Insurance Holding, 24% by Archer Capital, and 16% by Faisal Company for Financial Investments.
The financial leasing company aims for portfolio funds to reach EGP 600m during the first phase, divided between EGP 450m for large companies and EGP 150m of small and medium enterprises.
The total value of financial leasing contracts in the Egyptian market during the first nine months of 2015 reached nearly EGP 14bn, while there were 200 registered companies, of which only 20 companies are active.
