Kandil Glass x Beltone: Beltone Financial subsidiary Beltone Leasing and Factoring has inked an EGP 250 mn sale and leaseback agreement with Kandil Glass for its real estate assets and production lines, Beltone said in a statement (pdf) yesterday.

Where’s the money going? Kandil Glass said it will use the funds from the five-year agreement to finance working capital and investments needed to support its growth plans.

A busy year for Beltone, full of leaseback agreements: Beltone’s leasing arm has inked transactions worth over EGP 5 bn this year, that includes a EGP 1.2 bn sale and lease back agreement with Al Ahly Sabbour, a EGP 750-mn agreement with Pickalbatros, and a EGP 500-mn agreement with Hassan Allam Properties.

EXPLAINER–The sale-leaseback agreement: It’s a transaction in which a company sells an asset, such as real estate, to a buyer (generally a financial institution), and then immediately leases it back from the buyer. This allows the company to free up capital tied to the asset while still retaining use and operational control over it. This type of financial arrangement is often used by businesses to generate cashflow, reduce debt, or finance other business activities while maintaining the use of essential assets.

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