EFG Hermes Leasing and HSBC Bank Egypt have signed a cooperation agreement that will help small and medium-sized enterprises (SMEs) get access to 400 million Egyptian pounds of leasing and financing services throughout 2019. The agreement provides additional support to initiatives unveiled by the Government and the Central Bank of Egypt to boost the SME sector – widely regarded as the backbone of the country's economy generating a significant percentage of the nation's GDP. The core of the agreement is to provide SMEs with low interest rate funding, access to medium and long-term financing for capital expenditure and the ability to streamline cash flows. The signing ceremony at HSBC Egypt's head office and was attended by Hania Sadek, HSBC Egypt Executive Director and Chief Operating Officer, Helmy Ghazi, HSBC Egypt Managing Director and Head of Global Banking, Ahmed El-Kholy, EFG Hermes Leasing Chief Executive Officer, and Talal Elayat, EFG Hermes Leasing Finance and Treasury Director. "We are very excited for this opportunity to combine our experience with that of HSBC Egypt to deliver innovative financing solutions for various SMEs in the local market," said Ahmed ElKholy, EFG Hermes Leasing Chief Executive Officer. "This agreement comes in line with the CBE's initiatives and is part of our group-wide aim to grow the contribution of SMEs in our portfolio to 16% compared to the 6% seen in 2017." EFG Hermes Leasing launched a dedicated programme in May 2018 to target partnerships withsuppliers that facilitate SME financing solutions. Helmy Ghazi, Managing Director and Head of Global Banking, HSBC Egypt said "This agreement demonstrates our commitment to Egyptian SMEs and our ability to deliver the right mix of products, quality of service and international reach to support SMEs seeking to grow domestically and internationally. The latest HSBC Navigator report for Egypt highlights that 75% of businesses feel confident about success as Egypt's market dynamics improve and this agreement will help support growth-oriented companies." HSBC Egypt had previously launched SME Growth Funds in 2015 and 2016, totaling EGP 600 million, and doubled its balance sheet commitments to SMEs in 2017.
