Sale & Lease Back is a leasing option allowing the leasing company to purchase the asset from the lessee then leases it back to the lessee. This is an excellent tool for any operating company to deploy its existing stagnant fixed assets to create an additional source of cash to be used according to its needs. The applications of such tool are endless whereby the lessee can use the sale proceeds of the fixed asset in financing the lessee’s requirements whether related to working capital, capital investment, debt swap(s), further CAPEX & OPEX expansions.

According to the Financial Regulatory Authority “FRA”, the Sale & Lease Back maybe grouped under 4 main purposes; OPEX expansion, Highly Specialized / High Tech Assets, Real Estate Development (for Developers and Non-Developers), Debt Swaps.

Whether Direct lease or Sale & Lease Back, at the end of the contract’s duration, the lessee has the option to purchase the leased asset(s) at a pre-agreed nominal value which maybe as little as EGP 1.

Repayment under both types of service, is tailor made according to the lessee’s needs, whether in advance / in arrears, quarterly / monthly rentals with bullet payments, balloon payments, with residual value (RV) at tenor end, with Step-down, Step-up or a simple equal repayment plan inked in according to the client’s cash flow needs. In other words, the repayment options for leasing facilities are vast and tailored to the lessee’s needs.