Egypt's Qalaa Holdings, formerly Citadel Capital, announced Sunday in a press release that it has fully subscribed to an EGP 15 million capital increase for Tanmeyah for Micro Enterprise Services, a portfolio company of Qalaa subsidiary Finance Unlimited. Qalaa (CCAP.CA), alone has capitalized on the opportunity to extend financing to Tanmeyah in 2011 in a time of crisis and is finalizing the acquisition of just over 4.3% of an existing Tanmeyah shareholder's shares. Full subscription to the capital increase and the closing of the minority stake acquisition will see Qalaa Holdings' effective ownership of Tanmeyah rise to 70.03% from 51.0% today. The capital increase has received all necessary regulatory approvals from the Egyptian Financial Supervisory Authority (EFSA) and is scheduled to close during July pending finalization of other documentation formalities. Established in 2009, Tanmeyah will have total paid-in capital of EGP 50 million following the capital increase. "Tanmeyah is a company that has excellent growth potential within the current business environment in Egypt. It will play an important role in the development of Egypt by providing growth, working capital and other financial solutions to companies and individuals that would otherwise effectively be cut off from the financial system," said Qalaa Holdings Chairman and Founder, Ahemd Heikal. "I personally look forward to Tanmeyah becoming over a one billion pound company in the near future," he added. Tanmeyah has grown to become a leading Egyptian provider of financial services to Egypt's large under-served micro- and very-small-enterprise tiers. Since its inception in 2009 until today Tanmeyah has issued EGP 2.1 billion in short term loans that do not exceed 12 months in duration and has acquired around 350,000 clients. The company's current outstanding portfolio is EGP 330 million and expected to reach EGP 400 million by year's end. In the first half 2014 Tanmeyah's net profit reached EGP 15 million with the value of total loans for 2014 expected to reach EGP 650 million. "Tanmeyah is expected to launch an additional 16 branches nationwide on top of the 99 branches that it has currently in order to serve a wider segment of the population," said Amr El-Garhy, Managing Director at Qalaa Holdings. According to Tanmeyah Co-Founder and Executive Chairman, Amr Abouesh, Tanmeyah continues to leverage its existing infrastructure and systems in offering a wide variety of financial services to its clients. Its branches currently host money transfer and remittances service providers and bill payment services in addition to ATM's with a plan to expand the range of services offered to its client base such as very small enterprise lending and leasing.
