GGF BOOSTS SUPPORT TO GLOBAL LEASING COMPANY IN EGYPT FOR NEW RENEWABLE ENERGY AND ENERGY-EFFICIENT PRODUCT LINES
Luxembourg and Cairo, September 24, 2018 – With a further senior loan of USD 5 million, the Green for Growth Fund (GGF) has enhanced its support to Egypt’s Global Leasing Company (GLC) to promote customized renewable energy and energy efficient leasing products in the market.
Global Leasing Company remains a very suitable partner in the non-bank sector for GGF, given its demonstrated commitment to promoting energy savings, significant market share, and high demand for customized energy-related products in its market. In response to this high demand, GGF team and the GLC’s management decided to go for a top-up to galvanize the new product development efforts. This would help capitalize on the growing awareness of energy consumption among local businesses and enable Global Leasing to differentiate itself from its competitors.
Global Leasing Company has risen to a secure position among the top 10 leasing firms in Egypt in less than three years. Not daunted by the somewhat challenging economic environment of 2017, GLC managed to almost fully on-lend GGF’s initial investment of USD 2.5 million within a short period after disbursement. The company provides leasing to large corporates as well as small and medium enterprises (SMEs) in a broad range of sectors including real estate, transportation, healthcare, education, pharmaceuticals, food and beverages, paper, chemicals and oil. This diversified portfolio allows GGF funds to have a widespread impact on the energy efficiency of most sectors of the economy. GGF estimates energy saving of approximately 24,950 MWh and CO2 emission reductions of approximately 5,680 metric tons to result from this further outlay.
GGF Chairman Olaf Zymelka stated: “We are very happy about the previous partnership experience with Global Leasing Company and our close cooperation to ensure the swift on-lending. Not only have they demonstrated their dedication to playing an effective role in improving the energy efficiency of their market but have also shown the initiative to further develop this market, which is very promising.”
GLC’s CEO & MD Hatem Samir stated, “GLC is extremely delighted with the cooperation with GGF team who is continuously keeping close follow-up on our performance, which gives us motivation for better performance. Yes, the due diligence process was tough, yet very beneficial to GLC’s entire team members.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly, primarily through the contribution of senior debt, in renewable energy projects. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian development bank OeEB. The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, the German ethical bank GLS, and Church of Sweden. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
Media contact GGF
Manager, Marketing & Communications
Phone: +49 (0)69 271 035-171
Global Leasing Company (GLC) is one of the most prominent leasing companies in Egypt, established in Q1 of 2015 as a general lessor. Currently, GLC’s Gross Lease Book exceeds EGP 2 billion, of which ca. 10% are allocated to energy efficient projects.
GLC’s shareholding structure is comprised of renowned multinational financial institutions: Goldman Egypt’s Ezdehar Fund (60%) which is backed by EBRD, CDC, CWC & FMO and The SANAD Fund for MSME (30%) which was initiated by KfW Development Bank, while the remaining 10% is owned by Hatem Samir, GLC’s MD & CEO.
Media contact GLC
Hisham A. Fattah