Egyptian businessman Medhat Khalil’s Raya Holding unveils expansion plans for new unit

Aman Holding has announced plans to incorporate two companies under the name “Aman” for securitization and consumer financing to complete its non-banking financial services system.

Aman Holding is a subsidiary of Raya Holding for Financial Investments, a Cairo-based investment conglomerate owned by Egyptian tycoon Medhat Khalil.

The move aligns with the company’s plans to increase the volume of small- and medium-sized enterprises financing their activities through its digital services, as well as to capitalize on the region’s rapid use of the Internet and e-commerce services.

Aman Holding is expected to issue a fourth securitization bond worth about EGP500 million ($26.7 million) to finance medium- and long-term activities in line with its plans to launch its new units.

This is in addition to the EGP1.65-billion ($88 million) securitization bond that it issued to fund long-term projects. The subsidiary also plans to invest in the consumer financing market by obtaining credit facilities ranging from EGP500 million ($26.6 million) to EGP700 million ($37.3 million).

Raya Holding is an Egyptian investment conglomerate established by Khalil. He owns 58.1 percent of the conglomerate.

Raya Holding has grown into a leading brand in Egypt since its inception in 1999, with its diverse operations generating a net profit of EGP541.4 million ($34.5 million) in 2021, compared to a net loss of EGP45.7 million ($2.9 million) in 2020.

Raya Holding announced plans earlier this year to establish a new e-payment company in collaboration with TAQA Arabia, a subsidiary of Qalaa Holdings, a leading investment firm with a focus on Africa and the Middle East.

It recently agreed to sell a 62.3-percent majority stake in its subsidiary Ostool Transport to U.S. logistics and transport management company Paradigm Logistics as part of its efforts to expand its operations with a core focus on the financial technology sector, while reducing operational costs in highly competitive industries.

The Cairo-based investment conglomerate will sell 53.95 million shares, representing a total 62.3-percent stake in Ostool Transport, for EGP266.55 million ($14.31 million) in cash, or EGP4.94 ($0.265) per share, under the terms of the agreement.