Capital Market Authority Board Decision No. 80 of 2018 Regarding the Regulation of Financing Leasing Contracts for Targeted Companies by Venture Capital Companies

Egyptian Gazette - Issue 136, Addendum (A) on June 13, 2018 15

Capital Market Authority
Board Decision No. 80 of 2018
Dated 28/5/2018
Regarding the Regulation of Financing Leasing Contracts for Targeted Companies by Venture Capital Companies

The Board of Directors of the Capital Market Authority

Having reviewed the Capital Market Law issued by Law No. 95 of 1992 and its Executive Regulations; And the Financial Leasing Law issued by Law No. 95 of 1995 and its Executive Regulations; And Law No. 10 of 2009 regarding the regulation of supervision over non-banking financial markets and instruments; And the Statutes of the Capital Market Authority issued by Presidential Decision No. 192 of 2009; And the Board of Directors of the Authority Decision No. 45 of 2011 regarding the controls for calculating the maximum ratio of liabilities to equity for leasing companies; And the memorandum prepared by the competent administration at the Authority dated 20/5/2018; And the approval of the Board of Directors of the Authority in its session held on 28/5/2018;

Egyptian Gazette - Issue 136, Addendum (A) on June 13, 2018 16

Decided:

(Article One)

Venture capital companies, within the framework of conducting their activities, may finance certain leasing contracts concluded by leasing companies, through a tripartite agreement concluded by the company with the leasing company and the lessee (the targeted companies and projects seeking financing from the venture capital company). Pursuant to this agreement, the venture capital company shall finance the leasing company, provided that the role of the leasing company is limited to collecting installments of the leasing contracts from the lessee and acting as an agent for the collateral on behalf of the venture capital company, and that the lessee is committed to payment towards the venture capital company without recourse against the leasing company.

(Article Two)

This Decision shall be published in the Egyptian Gazette and on the Authority's website, and this Decision shall be enforced from the day following its publication in the Egyptian Gazette.

Chairman of the Board of Directors of the Authority Dr. Mohamed Omran