Premium International for Credit Services, a company that offers consumer finance solutions, plans to provide about EGP 2.3bn in funding next year.
According to Paul Antaki, the Chairperson of the company, Premium International has already provided EGP 1.6bn of funding since the start of this year and expects to reach EGP 1.7bn by the end of 2023, with 300,000 current holders of the “Premium” card.
The company also increased its capital from EGP 40m to EGP 125m by converting its retained earnings and raising new funds from its existing shareholders. This will enable the company to obtain new financing from banks and borrow around EGP 1bn shortly. The company also plans to increase its capital by another EGP 100m in the first quarter of next year.
Antaki revealed that the company is negotiating with banks to secure credit facilities worth nearly EGP 1bn. He said that the company works with all kinds of banks, both government and private.
He added that Premium’s merchant base covers various sectors, such as restaurants, clothing, and cars. He said that Premium’s existing customers can buy both new and used cars in instalments.
He also commented on the impact of currency depreciation and inflation on the consumer finance sector. He said that these factors can create more demand for installment services, as people need to maintain their standard of living. He said that offering installment services for products that people already need is a better solution than borrowing money.
He stressed that the company carefully evaluates the financial solvency of its customers before granting them financing, to avoid default. He said that the company does not charge interest on its financing, unlike some other companies that have a policy of burning money.
The company launched a program for short-term multi-tranche securitization bonds with a total value of EGP 2bn, with maturities ranging from 6 to 12 months. This will help the company to provide liquidity.
The “Premium Card” allows customers to buy their daily needs without any hassle, such as food, clothing, appliances, health care services, tourism, and travel. They can pay them back over 10 months without interest.
Antaki said that one of the advantages of Premium over bank electronic payment cards is that it offers continuous installment without interest for 10 months, not for a limited period like other cards.
Premium was established in Egypt in 2002 by Paul and Rami Antaki. It offers a special system for installment cards for employees in companies, through major trademarks in the Egyptian market.
