By Ramy Sameeh:

Cairo-Mubasher: International Company for Leasing (Incolease) is targeting EGP 1.1 billion ($153 million) worth of financing for its operations during 2015, said CEO Yehia Ezz El-Din in an interview with Mubasher.

“The total amount of financing for our operations in 2014 amounted to nearly EGP 750 million,” the top official said, “and we target increasing this amount by 45% this year.”

The EGX-listed company operates in providing corporate financial services and solutions under the finance lease system. It owns the biggest finance leasing portfolio in the Egyptian market.

The CEO revealed that his company is currently working on bolstering its operation, thanks to the country’s improving political and economic conditions.

A survey conducted recently showed that activities of Egypt-based companies saw in December their biggest growth in three months, amid recovering economy thanks to rising production and exports.

In 2014, the company faced several difficulties due to domestic unrest that led to slower growth in finance leasing activities and higher credit risks, Ezz El-Din said.

Egypt’s economy has suffered political and economic unrest since the popular uprising in 2011 that toppled former president Mubarak, then the ouster of Islamist president Mursi in 2013.

“There is remarkable recovery of investment inflows to Egypt and the start of new projects, which will boost Incolease future operations,” the CEO stated.

The Egyptian government is intending to launch mega investment projects valued at EGP 30 billion ($4.2 billion) in two years.

It seeks to woo major investments of about $13 billion during the upcoming economic summit scheduled for March in Sharm El Sheikh.

The top official indicated that 2015 will be better at all levels as the government seeks to carry out more economic reforms.

The company’s extraordinary general meeting postponed on Tuesday its decision on the proposed capital increase.

Commenting on the move, Ezz El-Din said the decision needs more studies, and the company should decide whether it will be through rights issue or bonus shares.

He also said that Incolease has not taken a final decision on delisting its stock from EGX.

The top official also attributed the profit decline in the first nine months of 2014 to a rise in tax by 5%.

Incolease had posted a fall by 6.5% in net profit for the first nine period to EGP 46.1 million, compared with EGP 49.3 million reported in the same period a year earlier.

Translated by Sayed Abdel Rahman

Photo Credit: Arabianeye-Reuters