Funds will strengthen capital base of leading private lender in the country
The EBRD is providing a subordinated loan of up to US$ 100 million to Commercial International Bank (CIB) to strengthen CIB’s capital base and support the growth of the bank’s lending in Egypt.
The subordinated loan qualifies as Tier II capital under the recently modified regulations of the Central Bank of Egypt. It is the second time under the new regulations that a third-party lender is providing a loan of this kind to an Egyptian bank. CIB, established in 1975, is Egypt’s leading private-sector bank, offering a wide range of financial products and services to its customers.
EBRD Managing Director for the southern and eastern Mediterranean region Janet Heckman said: “We are pleased to intensify our partnership with CIB. Through this loan, we support our partner’s growth plans, which can bring significant benefits to the country.”
Commenting on the signing, CIB’s Chairman and Managing Director Hisham Ezz El-Arab said: “This 10-year loan will allow us to maintain our exceptional capital ratios, add diversity to the capital base and position CIB for strong growth in future and support to our clients. This is good news for Egypt and for CIB.
We are very pleased to have concluded this transaction with the EBRD, marking another milestone in the strong partnership between both of our institutions.”
Egypt is a founding member of the EBRD and has been receiving investments from the Bank since 2012. To date, the Bank has invested €2.7 billion in 52 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The EBRD has also provided technical assistance to more than 600 small and medium-sized enterprises in the country so far.
Commercial International Bank (CIB) Egypt is the country’s leading private-sector bank and was rated the world’s best bank in the emerging markets in 2017 by Euromoney. It offers a broad range of innovative retail and corporate products and services to fulfill the needs of its customers: institutions, households and high-net-worth individuals, through a well-established network of branches exceeding 180 outlets across Egypt. CIB is the bank of choice for over 500 of Egypt’s largest corporations, thanks to its strong brand equity. Through superior management, operating standards, corporate governance best practices and training programmes, CIB has succeeded in positioning itself as the “Bank To Trust” and Egypt’s most profitable bank.