Beltone puts its factoring license to good use: Beltone Financial subsidiary Beltone Leasing and Factoring has inked a sale and leaseback agreement and factoring facility worth EGP 400 mn with local real estate developer IL Cazar for Urban Development, according toa statement(pdf).

The details: The agreements includes an EGP 200 mn sale and leaseback agreement and an EGP 200 mn factoring agreement.

SOUND SMART: A sale-leaseback agreement is 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.

Where will the money go? IL Cazar will use the funds to finance construction of its Creek Townproject in New Cairo, company chairman and CEO Nader Khozam said.

Remember: Beltone is new to the factoring game and only received a license from the Financial Regulatory Authority (FRA) in September to add factoring to its lines of business.

What they said: “The financing agreement with IL Cazar for Urban Development reflects our solid criteria for client selection and portfolio quality and resilience,” said Beltone Leasing and Factoring CEO Amir Ghannam. “We are proud to support key players in the real estate sector, especially IL Cazar, who have proven in a short time span to be among the top developers in the Egyptian market with a clear vision and well-defined growth plans.”

More Beltone + IL Cazar cooperation to come? “The leasing and factoring agreement is just the beginning of further collaboration with IL Cazar,” Ghannam added.

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