- Medhat Khalil: The transition of ownership to proficient investors aims to maintain the company’s annual growth rates of 20%
- Ahmed Khalil: Exiting the PET recycling industry came as part of Raya Holding’s strategy to achieve the highest possible value for our shareholders
- Hossam Hussein: We are completing all the necessary procedures to ensure a smooth transfer of shares
Raya Holding for Financial Investments announced that it has signed the business sale agreement of its subsidiary, BariQ for Advanced Manufacturing, with Intro for Waste Management, a subsidiary of Intro Group. The sale includes 98.76% of BariQ shares owned directly by Raya Holding, in addition to 1.24% of shares owned indirectly by Raya’s subsidiaries, with a total number of shares amounting to 6.5 million shares.
BariQ’s BoD has authorized the head of the board to take the necessary actions in order to close the deal valued at 490,750,000 EGP (four hundred ninety million seven hundred fifty thousand Egyptian pounds only) – the cash consideration for the sale of shares. Both sides shall work to fulfill a number of conditions stipulated in the contract of sale before completing the transfer of the shares in question.
Medhat Khalil, Chairman of Raya Holding for Financial Investments, has expressed his pleasure with the deal and the cooperation with Intro Group to continue the growth trajectory of BariQ, in light of the national plans to invest in waste recycling and rely on clean energy.
“BariQ achieves an annual growth rate of up to 20%. The transition of ownership to an investor with a wide experience in the field was aimed at moving forward while maintaining growth rates. Also, the principal goal of Raya, since its establishment, is to contribute to achieving sustainable development and promote crucial fields of businesses”, added Medhat Khalil.
Ahmed Khalil, CEO of Raya Holding added that exiting the recycling industry came as part of Raya Holding’s investment strategy to achieve the highest possible value for its shareholders through the establishment of ventures that Raya can utilize its experience for and maintain its leading position in the market.
Ahmed has also expressed his sincere thanks to BariQ employees, who have contributed in positioning the company on the map of international corporates in the field of recycling.
On his part, Hossam Hussein, CFO of Raya Holding, said that Raya Holding is a direct investment enterprise and has always been entering new fields of business and exiting others, like all investment companies.
“BariQ has achieved the desired growth rate, with which we can exit, paving the way for a new investor to continue the journey of success, given their extended experience in the field.”, added Hussein.
He stressed that BariQ is working to complete all needed procedures for the transfer of shares. He also noted that the nominal value of the company’s stock within the deal is 75.5 EGP per share.
In its sixth edition, the “Egypt for the Best” summit acknowledged both Raya Holding for Financial Investments and Raya Contact Center among top companies in the Egyptian Market 2020. Held under the auspices of H.E Prime Minister, Dr Mostafa Madbouly, the summit aimed to honour the top prominent figures and companies that positively impacted the Egyptian economy in 2020.
The summit, held by Amwal Al-Ghad magazine and Excellent Communications, was attended by several ministers and businessmen, including Minister of Trade and Industry Mrs Neveen Gamea – on behalf of H.E Prime Minister Dr Madbouly, Minister of Immigration and Egyptian Expatriates Affairs Ambassador Dr Nabila Makram, Minister of Planning and Economic Development Dr Hala El-Said, Minister of International Cooperation Dr Rania A. Al-Mashat, Minister of Environment Dr Yasmine Fouad, Ministry of Social Solidarity Dr Nevine Al-Kabbaj, Minister of Public Business Sector Mr Hesham Tawfik, the President of Egypt’s National Council for Women (NCW) Dr Maya Morsi, and about 300 executives of influential institutions and companies in the Egyptian market.
Raya Holding for Financial Investments was chosen as one of the top-performing Egyptian companies during the past year. Despite the circumstances of the pandemic, the company managed to overcome such a critical time while maintaining its growth and workload. Also, the summit awarded Raya Contact Center’s CEO Ahmed Refky for the company’s progress over the past months and for its creative solutions to enhance communication between customers and businesses.
Regarding the awards, Ahmed Khalil, CEO of Raya Holding for Financial Investments, expressed his delight that the awards crown the company’s achievements throughout its history, stressing that Raya continues investing in Egypt and diversifying its investment portfolio to keep pace with market needs, in view of the economic reforms pursued by the state and Egypt vision 2030.
Refky, for his part, underlined that Raya Contact Center is one of the first companies operating in the field and it has proven successful in light of the policy pursued by the company and thanks to its skilled and highly trained human cadres, which led it today to this recognition.
The ceremony’s award categories this year included “Top 100 Listed Companies” in terms of performance, “Top 50 Most Influential Women in Egyptian Economy”, “Distinguished Entrepreneurs”, “Innovators with Special Needs”, and “Best Performing Institutions in the Field of Social Responsibility and Sustainable Development”.
Egypt for the Best is one of the major annual events celebrating high achievers in all economic and social fields. It was first launched in 2015 and is held annually under the auspices of the H.E Prime Minister.
Under the patronage of Prime Ministry Dr. Mostafa Madbouly, Egypt Summit for the Top 100 Companies 5th Round awards Raya Holding for Financial Investment among Egypt’s top 100 companies with the leadership of Medhat Khalil, the Founder and Chairman & CEO of Raya Holding. The award ceremony was witnessed by HE Dr. Mohamed Al-Assar Minister of State for Military Production, HE Dr. Hala El Saeed the Minster of Planning, Monitoring and Administrative Reform, HE Dr. Nevine Kabbaj, Minister of Social Solidarity, HE Dr. Hisham Tawfik, Minister of Public Entrprise Sector, HE Dr. Nevine Gamea, Minister of Commerce & Industry, HE Dr. Rania Al-Mashat, Minister of International Cooperation, HE Ambassador Dr. Nabila Makram, Minister of Immigration and Egyptian Expatriates Affairs, and also many prominent Economic and Business men and Public Figures -with the participation of 700 Executive Leaders – attended this awards ceremony organised by Amwal El Ghad magazine.
The awards ceremony recognized and honored Raya Holding and the company’s strength of operations in the market, as well as its continuous development, becoming one of the top 100 companies in the market.
In the awards ceremony that was organized Amwal El Ghad Magazine, Hossam Hussein, Chief Financial Officer at Raya Holding, received the award on behalf of Medhat Khalil, Chairman and CEO of Raya Holding for Financial Investment. Raya Holding’s selection for this award and honor, was a result of an in-depth analysis and classification under the patronage of the prime minister in cooperation with SHUAA Securities Egypt. The qualification for this classification and selection for the award was based on a study of the largest and most important and prominent companies listed on the Egyptian Stock Exchange, through seven necessary metrics to measure the companies’ performance including: the market value of the company, the evolvement and growth of revenue and profitability. The list of Top 100 companies includes a variety of industries with Raya Holding standalone diversified scope spanning Aman for E-Payments, Non-Banking Financial Services, Microfinance, call centers, information technology, trade and distribution, heavy transport, manufacturing, including light transport vehicles, recycling of plastic waste, and the production of frozen vegetables and fruits in addition to exporting and restaurants.
The summit is also keen on celebrating annually the leaders of the companies and women who are influential and who contribute strongly to the transformations that occur in the Egyptian economy and the growth rates of the country’s gross domestic product, in line with the ambitious economic program adopted by the political leadership in cooperation with the private sector partners, which won the praise of many international institutions and world ranking centers.
Raya Holding for Financial investment announced on Tuesday that three subsidiaries, Aman for Financial Services, Aman for Microfinance, and Raya Electronics, will issue secularization bonds, with a total value of EGP 500m.
The Commercial International Bank – Egypt (CIB) acted as financial adviser and general coordinator for the issuance process, in addition to its role as guarantor of the initial public offering (IPO) coverage of the secularization process in cooperation with the National Bank of Egypt (NBE) as underwriter.
Dreny & Partners law firm also acted as the legal adviser for the issuance process, while Ernst & Young acted as the auditor for the issuance process.
The issue comprises of four different segments in terms of size and term, three of which are short-term with maturity dates of six, nine, and twelve months, and the fourth tranche has a medium-term maturity date of 36 months.
The weighted average coupon yield due to bondholders is about 12.7%.
The issuance made a combined accounting profit of EGP 36.2m for the three issuers of securitization bonds.
The issuance is the first of its kind in the Egyptian market for securitization of the portfolio of microfinance and consumer finance for the Egyptian consumer.
The weighted average of default and historical default in the loan and financing portfolios of the three issuers is less than 3% as a whole.
As a result, this issue has been awarded a prestigious credit rating of “Prime 1”, which is the highest credit rating for short-term maturities, and “A-” for the medium-term tranche, which will be dissolved within 36 months by Middle East Rating & Investors Service (MERIS), the regional partner of Moody’s International Services.
Chairperson and Managing Director of Raya Holding, Medhat Khalil, said the successful completion of the initial securitisation process in the group’s history is an achievement of its kind, which included two relatively newly established companies, Aman for Financial Services and Aman for Microfinance.
He added that the launch of securitisation bonds is one of the efforts to enhance the market position and competitiveness of both Aman for Financial Services and Aman for Microfinance in the local market, which has been growing rapidly since their inception in 2017 and 2018, respectively.
CEO and Board Member at the CIB, Hussein Abaza, said that the bank is at the forefront of national institutions supporting efforts to achieve financial inclusion for all segments of Egyptian citizens.
“Therefore, we have been keen to coordinate and participate in this issue with Raya Holding as the company’s investment vision in the field of non-banking financial services is consistent with our financial inclusion objectives,” he added.
Vice Chairperson of the National Bank of Egypt (NBE), Yehia Aboul Fotouh, explained that the issuance of Raya Group bonds comes in line of the NBE’s interest in supporting and promoting micro finance projects.
“The launch of securitization bonds is an important part of our commitment to generate sustainable funding sources that will strengthen our financial position in the coming period,” said Head of Financial Sectors at Raya Holding, Hossam Hussein.
Hussein added that the company aims to establish a new securitisation process worth EGP 700m in the next year.
The Board and CEO’s consulted in a strategy session to set the strategy for Raya 2020. Building on the outcomes of the Management Seminar, the strategy session took all the opportunities further turning them into actionable plans. Over the course of the past four years, Raya underwent numerous expansion plans including adding new industries to the portfolio and opening locations outside Egypt.
In 2016, Raya Holding launched its graduate program Rise. It provides an opportunity for enthusiastic talents, with maximum 2 years of experience, to gain in-depth exposure in varied functions and work within the departments that best match their skills, potential and personality traits.
For 1 year “Risers” rotate while working on stretch assignments. The program’s goal is to develop our leaders of the future and expand growth possibilities to both Raya and “Risers” in the different functions. Over 300 applications were received and filtered. The best 6 candidates were chosen to complete the program in December 2017.
Raya Holding organized its annual Raya Achievers’ Club (RAC) trip to Budapest, Hungary from the 20th of September to the 24th of September, 2016. Raya’s top achievers were awarded for their repetitive outstanding performance during 2015 with a 5-day trip where they enjoyed superb breathtaking nature, joyful activities, historical sightseeing, great affordable shopping, and cheerful gatherings. The trip included exciting tours in Budapest where the achievers visited Gellert Hill and had a look at the fabulous panorama from the top of the hill. They also passed by the ancient Basilica Church, had a wonderful river cruise in the Danube River at night, visited Lazar Park where a great horse show was presented along with other entertaining activities including a carriage ride and fun games. The Raya Achievers also went to Hero Square where they participated in a group cycling activity. The trip also included a day spent in Vienna, only four hours from Budapest. For more than 15 years since 2001, the RAC trip has been a great tool of recognition, appreciation, and motivation for Raya employees. Past destinations haven included Greece, Malaysia, Thailand, England, France, Brazil, Italy, Romania and South Africa.
Raya Management Seminar is an annual event held to realign the direction of the group involving all senior managers, directors, CEOs, and Chairman. The 2016 seminar was held in Sharm El Sheikh at Four Seasons Resort, with 78 leaders across all of Raya group. “Mega Trends” was the topic of the seminar, facilitated by “Frost & Sullivan”, a global research and consulting organization. Each line of business examined the global trends shaping the future and explored how these trends affected their operations and forecasts.
Using different tools and activities the lines of business presented their findings to the Chairman and Board as opportunities to be included in their growth plans. The seminar is a perfect opportunity for the leadership team at Raya to sharpen their skills as well as provide a platform for open discussion between the different companies sharing their business acumen and easing networking to expedite collaboration.
Cairo is a platform under the umbrella of TED organization that provides an opportunity for individuals to share “ideas worth spreading”. Talks vary in topics to include technology, innovation, and education featuring people telling their real-life experiences and learnings. TEDxCairo was held for the fifth year in 2016 at the Marquee Theater in Cairo Festival City, and it saw a turnout of over 1000 guests. Raya sponsored the event as part of raising awareness of the different Lines of Business (LOBs) and marketing Raya as an employer of choice. Representatives from the different LOBS came together to create an unforgettable fun experience for the attendees through different games and activities with a focus to inform attendants about Raya. Various interactive activities took place. Raya setup a “fun lounge” with different activities for the attendees to engage in the Ovio team was on hand catering the event.