Cairo, November 25, 2024
EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA) region, announced today that its investment banking division had completed advisory for an EGP 370 million working capital facility for Sylndr, Egypt’s leading online used cars player. The innovative structure of this transaction stands as Egypt’s first asset-backed working capital solution tailored specifically to the unique dynamics of Sylndr’s business model. This milestone highlights the commitment of Egypt’s banking sector to empowering startups and SMEs with creative, scalable financial solutions.
Sylndr is leveraging this financing facility to support its ambitious growth strategy and enhance its operational efficiency and scalability while solidifying its commitment to revolutionizing Egypt’s automotive industry. The transaction has been carefully structured to set a new standard for scalable, ring-fenced capital financing specifically tailored for Sylndr’s highly complex legal and financial framework that acts as a base for any new lender to scale up the structured facility.
Maie Hamdy, MD, Debt Capital Markets of Investment Banking at EFG Hermes, commented, “This transaction marks a significant shift not only for Sylndr but for Egypt’s growing startup ecosystem. Through this innovative, ring-fenced financing structure, we’ve provided Sylndr with the financial flexibility to scale confidently while ensuring the highest level of security for lenders. EFG Hermes remains committed to delivering dynamic financial solutions that foster growth and resilience for our clients, contributing to the broader economic transformation we’re witnessing across Egypt. We are excited to support Sylndr’s journey as it sets new standards in the online used-car market. We are proud to have utilized the inherent synergies within EFG Holding’s group of companies, having worked with EFG Corp-Solutions and Bank NXT as lenders on this transaction, utilizing the range of services we have to offer to serve our clients effectively.”
This financing facility aligns seamlessly with Sylndr’s mission to transform the used car market by building a trusted and transparent platform for buying, selling, and financing high-quality used vehicles. Sylndr is set to leverage this capital to improve customer experience, increase inventory diversity, and broaden financing options, positioning itself as Egypt’s premier destination for used cars.
Omar El Defrawy, Co-Founder and CEO of Sylndr, said, “This financing facility empowers us to unlock unprecedented growth while reinforcing our commitment to bring trust, transparency, and convenience to Egypt’s used car market. This milestone is a testament to Sylndr’s vision of offering differentiated mobility solutions, reshaping how people access affordable and reliable vehicles in Egypt’s growing market. We are particularly grateful to EFG Corp-Solutions, Bank NXT, and EG Bank for their invaluable support and confidence in our mission. Their dedication, along with the expertise of all parties involved, will enable us to expand our services, reach more communities, and offer more customers access to high-quality vehicles and seamless financing options. We look forward to continuing to transform the way people buy and sell cars in Egypt.”
EFG Hermes served as the sole financial advisor for the transaction. EFG Corp-Solutions, Bank NXT and EG Bank acted as lenders, amongst others. Adsero provided legal advisory services for Sylndr and Sarie-Eldin & Partners for the lenders.
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About EFG Holding
EFG Holding (EGX: HRHO.CA – LSE: EFGD) is a trailblazing financial institution that boasts a remarkable 40-year legacy of success in eight countries spanning two continents. Operating within three distinct verticals — the Investment Bank (EFG Hermes), Non-Bank Financial Institutions (NBFI) (EFG Finance), and Commercial Bank (Bank NXT) — the company provides a comprehensive range of groundbreaking financial products and services tailored to meet the needs of a diverse clientele, including individual clients and businesses of all sizes.
EFG Hermes, the leading investment bank in the Middle East and North Africa (MENA), offers an extensive array of financial services, encompassing advisory, asset management, securities brokerage, research, and private equity. In its domestic market, EFG Holding serves as a universal bank, with EFG Finance emerging as the fastest-growing NBFI platform, comprising Tanmeyah, a small and microfinance player, EFG Corp-Solutions, which provides leasing and factoring services, Valu, a universal financial technology powerhouse, PayTabs Egypt, a digital payment platform, as well as Bedaya for mortgage finance and Kaf for insurance as well as Fatura, a technology-backed B2B marketplace. Furthermore, the company delivers commercial banking solutions through Bank NXT, a leading provider of integrated retail, corporate, and Islamic banking products in Egypt.
About Sylndr
Founded in 2022, Sylndr is Egypt’s leading used car marketplace, providing a trusted, reliable, and transparent platform for consumers to buy, sell, and finance high-quality used vehicles. Driven by a mission to bring convenience and reliability to Egypt’s automotive sector, Sylndr is on the path of becoming a comprehensive 360-degree mobility solutions provider, expanding its unique offerings that support every aspect of consumers’ mobility needs.
