Egyptian auto market startup Sylndr secures EGP 370 mn

Sylndr puts its financing efforts up a gear: Egyptian used-car online marketplace Sylndr has secured a EGP 370 mn working capital facility from a group of lenders, the transaction’s sole financial advisor EFG Hermes said in a press release (pdf). The transaction sets “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,” according to the statement.

What’s the money for? Sylndr will use the funds to advance its growth strategy, improve operational efficiency and scalability, build up its inventory, strengthen users’ customer experience, and diversify its financing.

The lenders: EFG Corp-Solutions — the leasing and factoring arm of EFG Holding — acted as one of the lenders of the transaction, alongside EFG Holding’s commercial bank Bank NXT, EG Bank, and others.

What they said: “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,” said EFG Hermes Managing Director of Debt Capital Markets of Investment Banking Maie Hamdy said.

Advisors: EFG Hermes served as the sole financial advisor for the transaction. ADSERO (Ragy Soliman and Partners) provided legal advisory services for Sylndr, while Sarie Eldin & Partners provided counsel for the lenders.