Closing of US$ 13.48 Million securitization fund for Tamer Frères SAL
Beirut, February 7, 2017: BSEC – Bemo Securitization SAL and LUCID Investment Bank SAL are pleased to announce the closing of the first securitization fund for Tamer Frères SAL.
BSEC and LUCID successfully launched a US$ 13.48 Million securitization fund for Tamer Frères SAL, a prominent Lebanese company engaged, for several decades, in the promotion and distribution of healthcare equipment, luxury products, chemical and raw material, tobacco products and banking & IT solutions.
The securitization fund (TFH SIF) was structured to finance the healthcare division of the company. The Fund purchased from Tamer Frères a US$ 13.48 Million portfolio of trade receivables due from various Lebanese hospitals and medical centers, clinics and laboratories spread across different Lebanese regions. The purchase of the trade receivables by the Fund was made with no recourse and in a true sale manner. The company has more than US$ 25 Million of receivables in the medical field.
The structure provides for a 3 year revolving period during which the Fund applies the cash collections received under the securitized portfolio to purchase new trade receivables generated by Tamer Frères. Only after the termination of the revolving period such cash collections will be used to repay investors. The portfolio performance and the overall operations of the Fund will be carefully monitored by BSEC as Manager of the Fund throughout the life of the transaction, and will be reported to investors on a monthly basis.
TFH SIF securitization fund has been established under the Lebanese Securitization Law No. 705 / 2005 following the authorization of the Capital Markets Authority (CMA). The transaction is co-arranged by LUCID and BSEC, structured and managed by BSEC, and co-placed by BSEC and LUCID. The legal counsel of BSEC on the transaction is Prof. Nasri Antoine Diab Law Firm.
“This is the first securitization fund set-up for our company and we are confident of the value it will create for Tamer Frères during the next 3 years, both from financing and operating perspectives. The inception of this fund is a pure strategic decision as we anticipate significant growth in our healthcare activity that heavily relies on credit sales”, explained Ambassador Jean Tamer, Chairman of Tamer Frères.
LUCID, recently licensed as an investment bank by the Central Bank of Lebanon, has co-arranged and co-placed the Fund. “Securitization is an example of Tamer Frères’ modern governance and its vision of continuous development. The fund is expected to support the company in its growth expectations and to further contribute to the healthcare sector in general”, indicated Samir Taleb, Vice-Chairman at LUCID.
“Once again the healthcare securitization has proven to be an adaptable solution for companies in this sector. We have been involved in this specific type of assets since 2013 and we have since then well analyzed the performance and trends in the local healthcare industry”, stated Ronald Yazbeck, CEO of BSEC. “We are especially pleased to having worked together with Tamer Frères and LUCID for setting up this Fund, and we thank our partner banks for their participation”, he added.
The issuance is subscribed by LUCID Investment Bank, Banque BEMO, BBAC, Al-Mawarid Bank, Fransabank, Fransa Invest Bank, Blom Bond Fund (Managed by Blominvest Bank), First National Bank and IBL Bank.
About Tamer Frères SAL
Tamer Freres S.A.L. is a Lebanese company incepted in 1945 that promotes and distributes:
1. Healthcare equipment such as medical, paramedical and laboratory products to hospitals, clinics, laboratories, etc., under the brands of Medtronic, Siemens, Elekta, Covidien Erbe and many others
2. Luxury products such as watches to consumers, under the brands of Audemars Piguet, Mont Blanc, Omega, Hublot, Swatch, Flik Flak, and Breitling
3. Chemical and Raw material (for the food industry and for cosmetics etc.), under the brands of Dole, Solvay, Lubrizol, Firmenich, Momentive…
4. Tobacco Products, under the brands of Hauni, Hail & Cotton and Decoufle
5. Banking & IT solutions, under the brand of Wincor Nixdorf
Tamer Group started its business activity in 1895 when Tamer Family entered the world of business through the trade of agricultural products in the Lebanese market. It has since then, embarked on a journey to expand its market from local to regional. Tamer Frères’ long presence in the market gave it the opportunity to extensively improve its operations and gain a broad customer base, which in turns, allowed it to expand its portfolio of brands distribution, and to target new industries. The company always aspires to be an innovation pioneer, and to deliver superior quality products with exceptional customer service.
The medical division at Tamer Freres ensures that medical products and devices are imported to the local market as soon as they are launched by manufacturers worldwide. The sales of the medical division constitute a big percentage of the company’s turnover.
About LUCID Investment Bank SAL
LUCID Investment Bank is an investment bank regulated by the Central Bank of Lebanon and listed under number 142 on the list of banks. LUCID provides investment banking services to corporations and private banking services and alternative investments to high-net-worth individuals.
LUCID started in 2003 as a specialized corporate financial advisory firm offering high-end financial advisory services to medium size businesses in the Middle East & Africa region. In 2011, the Company re-positioned its brand, upgraded its license to a financial institution and further increased its capital in December 2016 and was upgraded to an investment bank.
Over the past 13 years, LUCID successfully executed more than 90 transactions ranging in size from US$ 5 million to US$ 200 million across 9 countries and 15 industries.
About BEMO Securitization SAL
BSEC is a financial institution specialized in structured finance, which has been active in the finance industry for over ten years, and has delivered high profile transactions which were recognized by the industry for the state of the art structuring and arranging practices. BSEC provides three key solutions: securitization, debt and equity transactions.
BSEC’s corporate mission is to be at the heart of the creation and development of the local financial ecosystem, by providing tier one corporates with adapted financing solutions that would be adequate investment opportunities.
BSEC is licensed as a financial institution under Lebanese law and is a wholly owned subsidiary of Banque BEMO SAL. BSEC is regulated by the Central Bank of Lebanon and the Capital Markets Authority, and is a member of the Association of Financial Institutions in Lebanon.