Raya Holdings completes $24.7-million deal to boost growth

Feyisayo Ajayi -
Key Points
  • Raya Information Technology has secured EGP 1.2 billion ($24.7 million) in credit facilities from Suez Canal Bank to boost growth and operational capabilities.
  • The partnership highlights Suez Canal Bank's commitment to Egypt's technology sector, aiming to foster commercial collaborations and empower industry players like Raya.
  • Raya plans to expand through acquisitions and is eyeing an IPO, reporting revenues exceeding $650 million for fiscal 2023.

Raya Information Technology, a subsidiary of Raya Holding for Financial Investment, the conglomerate led by Egyptian tycoon Medhat Khalil, has signed a pivotal agreement with Suez Canal Bank, securing credit facilities worth EGP1.2 billion ($24.7 million). This move is seen as a critical step to accelerate Raya's growth trajectory and enhance its operational capabilities.

The deal underscores Suez Canal Bank’s increasing focus on Egypt’s burgeoning technology sector, signaling a commitment to expanding its role in fostering commercial collaborations.

By extending these credit facilities, the bank aims to empower firms like Raya to scale their operations and meet key strategic objectives. This partnership forms part of a larger push to cultivate alliances with major industry players.

Enhancing business development

The agreement was signed at a ceremony attended by senior executives from both companies, including Akef El-Maghraby, CEO of Suez Canal Bank; Shehab Zidan, Deputy CEO; Al Haytham El Kobbrosly, Head of Corporate and Investment Banking; Hisham Abd El-Rasoul, CEO of Raya Information Technology; and Hossam Hussein, CFO of Raya Holding. Their presence highlights the strategic importance of the collaboration.

El-Maghraby emphasized the agreement's potential to enhance cooperation between Suez Canal Bank and Raya. He reaffirmed the bank's commitment to providing tailored financial solutions that support business growth and contribute to Egypt’s economic development.

Abd El-Rasoul called the partnership with Suez Canal Bank a key milestone that reflects Raya's financial strength and leadership in Egypt’s IT sector. He noted its alignment with Raya's digital transformation and market growth objectives. Hussein added that the deal supports Raya’s expansion plans and ensures liquidity for strategic projects, underscoring the company's potential for sustainable growth in the IT industry.

Raya Holding's growth ambitions

Established in 1999 through a merger involving entities owned by Khalil and Orascom Group, Raya Holding has become a top player in Egypt’s investment scene. Medhat Khalil holds the majority stake in Raya Holding, amounting to 17.67 percent, represented by 756,505,315 shares.

In a strategic push for growth, Raya is preparing for an expansion through acquisition, targeting a firm specializing in outsourcing and application development ahead of a potential initial public offering (IPO).

Additionally, Raya secured a credit line from Al Baraka Bank, which has recently entered into a cooperation agreement with Raya Information Technology. The company reported robust financial performance for the fiscal year 2023, with revenues exceeding $650 million, reinforcing Raya’s status among Egypt’s most resilient business groups.