EFG Hermes Corp-Solutions, a subsidiary of EFG Hermes Holding, has signed a USD 25 million deal with Transmar, a wholly-owned subsidiary of IACC Holdings, to finance the purchase of a cargo vessel. The vessel has a carrying capacity of 2100 TEU (twenty-foot equivalent units) and measuring 204 meters in length.
The new vessel, Transmar Legacy, bolsters the company’s Red Sea Service and connects Egypt and Saudi Arabia. The leasing transaction will be worth a total of $33m for the purchase of Transmar Legacy.
“We are proud to enter into this partnership with Transmar on the first of many vessel financing transactions to come in our pipeline. This flagship leasing transaction is in line with our strategy to diversify our portfolio and create value across multiple industries. As one of the leading leasing and factoring companies in Egypt, this transaction marks another milestone for EFG Hermes Corp-Solutions, as we enter the maritime industry and support in enhancing the supply chain industry at large. We have worked in collaboration with multiple international and global stakeholders including legal firms, insurance companies and banks, among others to finalize this transaction. With Transmar’s, experience, we are pleased to act as an enabler, gearing them towards sustainable growth,” Talal Elayat, CEO of EFG Hermes Corp-Solutions, stated.
Global supply chain constraints, brought on largely by COVID-19, stifled the movement of cargo towards the end of 2021, as the effects of the pandemic spilled over to factories and workers, handicapping production worldwide. In the Middle East, a shortage of freight space and manpower, compounded by a rapid recovery in consumer demand, led to a shortage of carriers and continues to hamper a steady flow of delivery.
“Working with EFG Hermes Corp-Solutions demonstrates the confidence and respect we share for each other’s expertise and experience. Such a strategic transaction reflects our joint commitment to expand in the shipping industry at a time when demand for the movement of cargo in the region is among the highest since pre-pandemic levels. As Egypt’s only container shipping line, it is only fitting that we should partner with Egypt’s universal bank and the leading investment banking franchise in FEM, EFG Hermes Holding, to acquire Transmar Legacy,” Ahmed El Ahwal, Managing Director of Transmar, commented.
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