May 16, 2011- Bemo Securitization SAL (BSEC) has successfully closed a trade receivables securitization for Cherfane, Tawil & Co (CTC), the exclusive distributor of Samsung electronics in Lebanon.

 A “receivables securitization” is a way to supply immediate cash to a company in exchange of its portfolio of future revenues, coming from sold goods.

BSEC, a Beirut-based financial institution subsidiary of BEMO bank, said the deal is part of a multiple issuance program of up to $24million. The transaction, backed by a diversified portfolio of trade receivables granted by CTC to its clients, is the first term trade receivables securitization. The first issue “SS – FUND” transaction, which funds a portfolio of $9million, consists on the issuance of a 4.5 year notes offered to the public and underwritten by local investors.

Lebanon witnessed the first two securitization transactions in the MENA region, both initiated by BSEC, which is also active on the regional level.

Commenting on the transaction, Antoine Cherfane, President of AC Holding sal, which owns CTC, said “the transaction provided our company with an alternative source of funding that allowed us to enhance our financial position as well as our key financial ratios."