Citi Client Casebook Middle East and Africa 2022

Liquidity and Working Capital 17 This customised solution has also provided EGA with an option to offer longer payment terms to its clients. The implementation was achieved within a very aggressive timeline: The facility went live and was funded within five months with the implementation process as follows; initial discussion took place at the end of May 2018 on the receivable portfolio from EGA; programme structuring took place in June/July 2018; documentation/legal agreements negotiation/on-site due diligence and system testing in August/September 2018; facility went live in October 2018, meeting EGA’s timing requirements. Time was of the essence in delivering the programme which required providing a receivable solution across a portfolio of 400+ customers across 40+ countries. The Results This off-balance sheet receivables purchase solution is a unique structure in the Middle East market whilst providing EGA the option to leverage the same digital structure for SCF. Key Benefits • Improves ROIC. • Provides a solution across majority of its customers in 40+ countries. • Accelerates cash flow and improves working capital management. • Generates additional free cash flow creating additional shareholder value. • Increases visibility and control through the IT system solution which focuses on STP.