March 6th 2014

RYMCO’s Vehicle Inventory Securitization

RYMCO’s Vehicle Inventory Securitization

A milestone for the regional securitization industry

 MedInvesment Bank s.a.l. (“MIB”) and Rasamny Younis Motor Company s.a.l. (“RYMCO”) announced the successful closing of RYMCO SEC I MSF, the first Vehicle Inventory Securitization in Lebanon and the MENA region. A press conference was held at the RYMCO Headquarters in Chiyah, in the presence of representatives from the MedInvestment Bank, RYMCO, journalists and media editors.

In his opening speech, Mr. Fayez C. Rasamny, Chairman and CEO of RYMCO, the exclusive dealer of Nissan, Infiniti, and GMC brands for the Lebanese market, said: “Closing this very challenging and innovative securitization transaction proves yet again that RYMCO is on the forefront of financial innovation. This transaction gave RYMCO access to off-balance sheet funding and allowed it to diversify further its funding sources by tapping a new investor base. I am glad it was a success and I am confident RYMCO will continue to set the standards when it comes to financial innovation.”

In his turn, Mr. Mohamed Ali Beyhum, Executive General Manager of BankMed and MedInvestment Bank, the sole lead manager of this operation, highlighted the importance of this transaction saying: “It is an important milestone for our Banking Group as well as the local and regional securitization industry, since it is the largest non-mortgage Asset Backed Securitization (ABS) executed out of Lebanon to-date, the first Inventory Securitization in the MENA region and the first securitization of non-financial assets out of Lebanon.”

Mr. Samer Salam, Chief Executive Officer of SaudiMed Investment Company which acted as a technical advisor to MedInvestment Bank, explained further: “The transaction is a securitization of a portion of the brand new vehicle inventory of RYMCO. The deal provides for a four-year replenishing period during which additional eligible assets could be financed through the structure, bringing the total expected financing provided to RYMCO over the life of the transaction to almost 250 million USD”. Lastly, Mr. Abdallah Nassif, Head of Structured Finance at SaudiMed Investment Company noted: “The aggregate transaction size is close to 15 million USD with two tranches of Notes placed with 35 investors”.

Soumrani Lawyers and Legal Counsels and Rasamny & Saadi Law Firm acted as legal advisors to MedInvestment Bank and RYMCO for this transaction respectively.

MedInvestment Bank s.a.l. & SaudiMed Investment Company are wholly owned subsidiaries of BankMed s.a.l., which is part of GroupMed Holding, a prominent regional conglomerate with a global network of companies spanning Lebanon, Saudi Arabia, Turkey, Cyprus, UAE, Jordan, South Africa, and Switzerland offering an integrated platform of customized and innovative financial advisory and financing solutions and covering a wide spectrum of market sectors.

Rasamny Younis Motor Company s.a.l. is a joint stock company established in 1957 in Lebanon and is the only automotive dealer to be listed on the Beirut Stock Exchange since 1998. RYMCO is one of the leading vehicle retail dealerships in Lebanon, where it holds a considerable market share in the new vehicle retail industry and commands a considerable portion of the used vehicles market. RYMCO has automotive dealership arrangements with inter alia, Nissan Motors (Nissan, Infiniti), GM vehicles (GMC).