BSEC launches securitization for Dima Healthcare

BEMO Securitization (BSEC) has launched a $16.2 million securitization investment fund for medical supplies and pharmaceuticals distributor Dima Healthcare. This is BSEC’s second securitization investment fund for Dima Healthcare. The first one was valued at $13.9 million and was launched in February 2014.

The second fund, named DHC Healthcare 2 SIF, has issued $16.2 million against its trade receivables due from 60 hospitals and 12 healthcare providers (laboratories, clinics and institutions). The average collection period of the portfolio ranges between nine and 11 months.

The revolving period is three years, during which the fund applies the cash collections it receives under the securitized portfolio to purchase new trade receivables generated by Dima Healthcare. After the termination of the revolving period, such cash collections will be used to repay investors.

“The first securitization fund showed the importance of securitization to the company’s financial strength. The second is to support the expected growth, especially since we recently won new distribution licenses,” said Michel Zoghzoghi, Chairman of Dima Healthcare SAL.

DHC Healthcare 2 SIF, which is structured, arranged, placed and managed by BSEC, has obtained the Capital Markets Authority’s approval.

The issuance is subscribed by Banque BEMO, Allianz SNA, BBAC, Banque Misr Liban, Société Générale de Banque au Liban, First National Bank, BLC Bank, BEMO Europe Banque Privée, CreditBank, FFA Private Bank, and Saradar Bank.

BSEC is a wholly owned subsidiary of Banque BEMO.