Assets under management increased by 10% at the end of 2019

EFG Hermes wants to implement an expansion plan based on an increase in its asset portfolio of approximately $ 4 billion, through a number of axes aimed at injecting more direct investment into the Egyptian markets and the strengthening of internally and externally managed assets.

Kareem Moussa, co-CEO of the group's investment bank, said the group's projects to support and grow these assets depended on the group's total direct investments, which had reached nearly a billion dollars to the end of the first half of this year, concentrated in three key sectors represented in each. From education, health and renewable energies.

He added that the group's plan in this activity was based on the injection of direct investments worth $ 35 billion in the education sector in the Egyptian market up to ################################################ 39, at the end of the year 2019, through the education fund created by the group in partnership with the group "GEMS" for education with a maximum share of 50% each in order to launch A new platform in the basic education sector in Egypt, in addition to investing more than 305 million Egyptian pounds in the health sector through the l & # 39; acquisition of a pharmaceutical company before the end of the third quarter of this year, as well as stimulate the Group's direct investment in the renewable energy sector in Europe. And American A.

He pointed The group 's plans for the EGP 14 billion managed asset base in the Egyptian market aim to increase them by 10% by the end of this year, in addition to maximizing the asset base. regional management. "FIMAsset Management, acquired by the Group in 2017, manages $ 2.3 billion worth of assets and regional equity portfolios. It aims for further expansion by adding a fixed income business, in addition to the expansion of the Saudi market and other emerging markets.

With regard to the investment climate in the Egyptian market, he said that the market had experienced many investments in different sectors in recent years, but that the renewable energy sector was still rising interest rates and the high cost of financing, which still constitute a major obstacle for institutions and investors. To investment in this sector in the Egyptian market.

• A state of economic mobility in the Egyptian market, which in turn promotes the growth of investment opportunities in various sectors, what are the main features of the "Hermes" investment plan for the coming period?

  The group's strategy for the coming period is based on: Implementation of an expansion plan based on increasing our portfolio of assets, across a number of axes represented by the injection of more and more Direct investment in the Egyptian and regional markets, in addition to strengthening the asset base managed internally and externally across a number of axes.

• What are the main targeted investment sectors?

  We aim to maximize the volume of our direct investments in the Egyptian and overseas markets by focusing on sectors with high growth potential and generating returns, especially given the favorable evolution of the investment climate. , represented in the sectors of education, health and renewable energies.

• What about the main features of your targeted plans in these areas? Total new investments?

  With regard to the education sector, we plan to invest up to $ 35 million in the Egyptian market in 2019, after increasing the size of the direct and specialized investment fund for basic education. , which rose from $ 109 million to nearly $ 133 million at the second closing, an increase of $ 24 million. By funding them through the entry of Gulf institutions interested in the sector.

  During the first half of this year, we managed to invest approximately $ 20 million in the fund's capital through the acquisition of schools in Madinaty and Al Rehab, as well as two schools in Cairo and Alexandria from here. the end of the third quarter of this year.

  In general, these investments are part of a partnership with GEMS Education, an international institution active in the field of educational services, since the middle of the year 2018, in order to launch a new platform in the basic education sector in Egypt and contribute to the construction of a sustainable future for future generations, through the establishment An investment fund managed by the sector the company's direct investments to finance new partnership projects, and we are looking for five years after the launch of the fund to place the Fund's institutional entity on the stock market.

• What is the total investment targeted in other sectors?

  The health sector is considered as one of the most vital sectors of the Egyptian market and we aim, before the end of the third quarter of this year, the conclusion of the first transaction in the health care sector by the through the acquisition of a pharmaceutical company whose total amount exceeds 350 million Egyptian pounds.

  We are currently studying the creation of a direct investment fund in the real estate sector during the year 2020. It is likely that the fund will be created in partnership with major real estate development companies. Currently, studies are underway to establish the fund and the capital of the fund or its investment strategy has not yet been determined.

• In terms of the total assets of the Group, what is the total assets at the end of the first half?

  The group's asset portfolio was approximately $ 4 billion at the end of the first half of 2019, including direct investments of $ 1 billion. Represented in three major sectors, representatives of the renewable energy, health and education sectors in different markets, in addition to managed assets of up to $ 3 billion, of which 14 billion pounds in the Egyptian market.

• What about your goals for assets under management in Egypt this year?

  We plan to increase the size of our assets in Egypt by up to £ 14 billion by the end of this year 2019, along several lines that will support these trends over the period. to come up.

• How much total assets are managed in the markets of the region and what is your plan to maximize the asset base?

  "We are going through a businessFIM"Asset Management, which we have acquired since 2017, has assets and portfolios of regional stocks valued at $ 2.3 billion. The company plans to expand further by adding a fixed income business and is also looking to expand into the Saudi market and other emerging markets.

• What about group outputs implemented during the last period?

  We have put in place a number of recent outlets with a total value of one billion dollars, including outflows from the renewable energy sector in Europe rising to 800 million. euros, via the sale of the Group's investment portfolio in wind power plants in France, Belgium, Portugal and Spain, bringing the total value of direct investments to 1 billion. dollars

• What are the main challenges of growing direct investment in the renewable energy sector in the Egyptian market?

  The Egyptian market has recently been boosted by investments in various sectors, but the renewable energy sector still faces some hurdles, including high interest rates and the high cost of financing, which still constitute a major hurdle for the institutions. and investors who want to invest in this sector in the Egyptian market.

  For Hermes, investments in this sector are based on the European markets, where we have managed to generate high returns for our investors over the past four years, and we are looking at the current period as America's one of the most important markets in this sector.