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Sunday, 22 August 2021

2021 is turning out alright for Egypt’s debt market

EFG Hermes Corp-Solutions took the lion’s share of Egypt’s leasing market in June, after more than doubling lending m-o-m, according to the Financial Regulatory Authority’s monthly report (pdf) on the non-banking financial services (NBFS) sector. EFG Hermes Corp-Solutions’ market share stood at 21.8% in June after loaning out EGP 2.2 bn, up from EGP 1.1 bn in May (pdf). BM Lease had the second-largest share of the market at 16.8%, followed by CI Capital’s Corplease with 11.9%. Monthly lending in the sector grew 151.3% y-o-y to EGP 10.7 bn in June, up from EGP 4.3 bn a year ago. Total lending in the sector now stands at EGP 10.1 bn.

On a six month basis, financial leasing companies loaned a combined EGP 35.6 bn in 1H2021, up c. 39% y-o-y. Corplease took the biggest chunk of transactions, with a market share of 16.6%, followed by BM Lease (15.1%) and EFG Hermes Corp-Solutions (10.7%).

The factoring market is also on the up: The value of invoices factored in the Egyptian market rose to EGP 2.2 bn in June, up almost 169% from EGP 831 mn from the same month in 2020, according to the report. GB Auto’s NBFS arm Drive had the largest share of Egypt’s factoring market after increasing its market share to almost 24% in June, loaning out a total of EGP 536 mn, coming ahead of Egypt Factors (15.3%) and EFG Hermes Corp-Solutions (14.9%).

But Enterprise, what exactly is factoring? We’ve got you covered here.

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