TechnoLease for Financial Leasing

Established in accordance with the decision of the General Authority of Investment and Free Zones and Commenced finance lease activities in accordance with the provisions of Law No. 95 of 1995.

Technolease is considered the most growing company in this business, although there are thousands of finance lease companies in Egypt which founded more than twenty years ago, it succeeded in becoming one of the largest companies where it has reached second place in the fourth quarter of 2011, according to the report of the Egyptian Financial Supervisory Authority.

Distributable net profits of the company amounted to ninety million Egyptian pounds what approximately about fifteen million U.S. dollars [after deducting Reserves and provisions].

The company aims at medium and large operations in the field of Leasing.
The company can purchase a current asset which is owned by the client or purchase an asset for the client from a third party or contracted for its construction or Import and leased to the client.

Criteria for the distribution of risks:
The risk distribution policy identifies a specific percentage in the company archives for each of the economic activities such as industrial and agriculture, real estate, mining, transport commercial and tax.
The company is committed not to issue a grant for the same activity if the rate reached the ceiling specified in the portfolio unless there is a new rate available for use within the portfolio for the same activity; the Main Committee of Credit is being held on a weekly basis and may not be postponed for two consecutive terms.

The concept of finance lease is based on the notion of separation between ownership and possession – and is based on the idea that gaining profit is associated with using a specific asset, not its ownership, What makes finance lease a good way for financing the purchase of assets.
We solve the difficult equation of maintaining the tenant possession of the leased asset and at the same time obtaining the necessary fund for the investment activity which gives the opportunity for businessmen and entrepreneurs to acquire fixed assets with no burdens or restrictions on cash flow, giving an opportunity to increase the value of working capital. Leasing is considered a very important source of funding on the medium and long-term as it leads an effective role through supporting the development of productive asset base for tenants as whole, which leads to increase the local establishments ability to compete globally and to keep up with market.

Reports of the General Authority for Financial Supervision:
According to reports issued by the General Authority for Financial Supervision (a government body), The market share of Technolease ranged between 20% and 30% with an average of about a quarter of the Egyptian market.

Finacial Leaseing Laws:

  • Law NO:95 Of 1995 on Finacial Leaseing.
  • Law NO:16 Of 2001 on Finacial Leaseing - Provesions Ammedments on law 95 of 1995.
  • Decision of the Ministery of Housing, Utilities and Urban Communities No. 229 for the year 2015.

The accounting treatment of the financial leasing activity:

  • Rules and accounting standards of the financial leasing - Standard No. (20).

Financial Leasing contract:

  • Financial Leasing contract model.

Key Facts and Indicators:

Financial Leasing Contracts according to SectorValue (EGP)Percentage
Real Estate3,454,715,864%35