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EFG Hermes Corp Signs $25 mln Vessel Finance Deal with Transmar

EFG Hermes Corp-Solutions, a subsidiary of EFG Hermes Holding and one of Egypt’s leading leasing and factoring companies, has signed a $25 million deal with Transmar, a wholly-owned subsidiary of IACC Holdings and Egypt’s only container shipping line, to finance the purchase of a cargo vessel.

According to a statement by the company, the cargo vessel has a carrying capacity of 2100 TEU (twenty-foot equivalent units) and measuring 204 meters in length, the new vessel, ‘Transmar Legacy’, bolsters the company’s Red Sea Service, primarily connecting Egypt and Saudi Arabia.

It said the leasing transaction worth a total of $33 million for the purchase of Transmar Legacy will enable Transmar’s growth, reinforcing the company’s position as the region’s leading container line and as a long-standing reliable partner, supporting the region’s top exporters and importers.

Transmar has also made sizeable investments towards the acquisition of new shipping containers, promoting new market entries and boosting further growth.

Speaking on the latest deal, CEO of EFG Hermes Corp-Solutions, Talal Elayat said: “We are proud to enter into this partnership with Transmar on the first of many vessel financing transactions to come in our pipeline.

“This flagship leasing transaction is in line with our strategy to diversify our portfolio and create value across multiple industries. As one of the leading leasing and factoring companies in Egypt, this transaction marks another milestone for EFG Hermes Corp-Solutions, as we enter the maritime industry and support in enhancing the supply chain industry at large.

“We have worked in collaboration with multiple international and global stakeholders including legal firms, insurance companies and banks, among others to finalize this transaction. With Transmar’s, experience, we are pleased to act as an enabler, gearing them towards sustainable growth.”

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Also speaking, CEO of IACC Holdings, Mohamed El Ahwal said: “We take pride in being an agile organization that quickly responds to the swift changes defining the current global shipping and logistics industry.

“We are proud to resume our ship-owning business model (after a 10-year hiatus) and believe this investment marks a new chapter of growth, not only for Transmar but also for the regional shipping industry as a whole. 

“Building on a track record spanning over four decades, our investments, underpinned by an expansionary vision, is a solid affirmation of our commitment to our partners.”

Global supply chain constraints, brought on largely by COVID-19, stifled the movement of cargo towards the end of 2021, as the effects of the pandemic spilled over to factories and workers, handicapping production worldwide. In the Middle East, a shortage of freight space and manpower, compounded by a rapid recovery in consumer demand, led to a shortage of carriers and continues to hamper a steady flow of delivery.

On his part, the Managing Director of Transmar, Ahmed El Ahwal said: “Working with EFG Hermes Corp-Solutions demonstrates the confidence and respect we share for each other’s expertise and experience. Such a strategic transaction reflects our joint commitment to expand in the shipping industry at a time when demand for the movement of cargo in the region is among the highest since pre-pandemic levels.

“As Egypt’s only container shipping line, it is only fitting that we should partner with Egypt’s universal bank and the leading investment banking franchise in FEM, EFG Hermes Holding, to acquire Transmar Legacy.

“As a customer-centric organization, we are investing in growth to cater to our customers’ needs in today’s rapidly evolving supply chain industry.  We believe this expansion will help support Egypt, Saudi Arabia, and the UAE’s ambitious export growth targets and secure the supply chain powering the region’s top businesses and industries.”

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