A source has exclusively told Daily News Egypt that Rawaj, a subsidiary of Arabia Investments Holding (AIH), will start operating under its consumer finance licence by the third quarter (Q3) of 2021.
Rawaj is focusing on digitising the operations of the business to maintain simpler and easier operations with the customer. It will also implement a customer-centred approach within the new consumer finance activities that are expected to start in the second half (H2) of the year.
The source added that the management at AIH is planning to establish a fully-fledged non-bank financial service (NBFS) company in the near future, by adding new activities including insurance and mortgage financing.
The management is implementing sukuk issuance amounting to EGP 200-300m, which will be finalised by the end of this year. It also targets another two sukuk issuance during 2021, which will be one convertible and one callable.
It is looking to securitise a portion of the portfolio that is worth EGP 1.5bn. According to the management, this is expected to take place by the end of Q3 of 2021 or the beginning of Q2 of 2022, and is set to generate a one-time profit that will depend on the quality of portfolio
The source added that the management is planning to split AIH into two separate holding listed companies by Q1 of 2022. One company will include all the traditional investments (Construction and Materials), whilst the other will include all NBFS investments.
This is in addition to AIH creating a single corporate identity for all the subsidiaries in the group, which will take place by launching a single corporate customer-facing brand.
