EBRD, IFC Take About 14 Percent Stake in Egypt’s Banque du Caire

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EBRD, IFC Take About 14 Percent Stake in Egypt’s Banque du Caire

Prime Highlights-

The EBRD and IFC have each invested US$100 million in Banque du Caire’s IPO, securing a combined stake of about 14 percent.
The bank listed on the Egyptian Exchange on 2 November, and it said investors oversubscribed the offer 27 times.

Key Facts-

The IPO covered 6,862,500,000 shares valued at EGP 36.37 billion, or 45 percent of the bank’s 15,250,000,000 shares.
The EBRD will also provide technical cooperation on digital transformation, cybersecurity and environmental and social risk management.

Background-

The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) have each invested US$100 million in Banque du Caire’s initial public offering (IPO). Together, they hold about 14 percent of the Egyptian bank.

The IPO offered 6.86 billion shares worth EGP 36.37 billion, or 45 percent of the bank’s 15.25 billion shares. Banque du Caire listed on the Egyptian Exchange on 2 November and said investors oversubscribed the offer 27 times.

The EBRD said its stake will help the bank adopt listed-company standards, including stronger governance, climate practices, digitalisation and cybersecurity. It will also provide technical cooperation on digital transformation and risk management. The IFC said its investment aims to help the bank lend more to businesses and households across Egypt.

Francis Malige, EBRD Managing Director for Financial Institutions, called the IPO a resounding success and a strategic milestone for Egypt’s privatisation programme. He said the EBRD invests as a long-term institutional investor to widen private ownership and build confidence in Egypt’s reform agenda.

Ary Naïm, IFC Division Director for North Africa and the Horn of Africa, said the investment aims to help businesses access finance and create more and better jobs.

Hussein Abaza, CEO and Managing Director of Banque du Caire, called the listing a defining milestone. He said the bank will focus on disciplined risk management, sound governance and sustainable growth, and thanked the two lenders for joining.