The Osoul Securities Brokerage Company has signed a Memorandum of Understanding (MoU) with Adilease Financial Leasing Company, a subsidiary of the Abu Dhabi Islamic Bank (ADIB).
In a statement to the Egyptian Exchange (EGX), the company stated that the MoU stipulates the provision of financing worth EGP 350m. This would go directly to assets to refinance its clients through the margin purchase system through the factoring mechanism, in an unprecedented step in the Egyptian capital market.
The company said that this quick step came as part of the agreement between the two institutions, to benefit from some of the mechanisms developed by the Financial Regulatory Authority (FRA).
This falls within the company’s objectives in the securities of its transformation and focuses on financing activities and maximising the securities credit portfolio in an unprecedented way.
It pointed out that the MoU is one of the steps that will be taken to implement its comprehensive plans for a complete transformation. This would ensure it benefits from its legacy in multiple aspects.
“This is what made us move towards a complete focus on the financing activity and making the mediation activity a subsidiary activity only for the purposes of legal and structured funding, which puts different assets in place for the reasons for the strength of the executive management, its financial position and its accumulated experience and regularity since its establishment with all different financial institutions,” the statement read.
According to the statement, this mechanism developed by the FRA’s Resolution No. 25 issued on 28 February, is the first of its kind that will give a future impetus to the volume of activity.
It also includes the increase in this activity, and a re-evaluation of securities companies that will be able to build on this decision in the right direction.