BEMO Securitisation (BSEC), in cooperation with FFA Private Bank as co-arranger, successfully closed a new transaction of trade receivables securitization for Cherfane, Tawil, & Co., the exclusive local distributor of Samsung electrical home appliances and electronics.

The transaction consists of an issuance of $7 million of two classes of notes: $5 million of Class A notes and $2 million of Class B notes, which together will fund a portfolio of $8.24 million.

“Starting from the closing date of the transaction which took place July 7, the fund enters a 4-year revolving period when Notes A and B start receiving interest payments on a quarterly basis,” said Darine Bejjani, Senior Analyst at BSEC, a subsidiary of BEMO bank. She said that during this period, the collections of the fund from receivables will be used to purchase additional receivables from CTC, instead of redeeming the notes. Following this period, the fund enters an amortization stage when notes holders receive principal payments over a few months until full redemption.

“Our sales have increased by 52 percent last year, hence the urgent need to support our clients,” said Antoine Cherfane, Chairman of Cherfane Group.

This is the second issuance of its kind for the group. “In May 2011, we performed the first securitization transaction for the Cherfane Group with notes totaling $7 million, which has a revolving period ending April 2015,” said Bejjani.

BSEC is a financial institution specialized in structured finance. The issuance was subscribed to by local banks.