EFG Hermes (HRHO) signed a sale-leaseback (SLB) agreement with Madinet Nasr Housing (MNHD) with a total value of EGP 750 million.
What’s a Sale-Leaseback🧐 In an SLB, the owner of an asset sells the asset to someone else & the asset is then leased back to the first owner.
Companies use SLBs to utilize cash they invested in an asset for other purposes, but still need the asset itself to operate their business.
Why is this Important🤔 Both companies expressed their happiness with the deal. MNHD CEO stated that “the partnership with EFG Hermes will allow us to employ our financial capabilities more efficiently, which opens up great prospects for expansion & development for the company.”