EBRD provides US$150 million to Egypt’s CIB
The European Bank for Reconstruction and Development (EBRD) is supporting Egypt’s financial sector with a US$ 150 million subordinated loan to the largest private bank in the country, Commercial International Bank (CIB).
This financing facility will be used to strengthen CIB’s Tier II capital, bolster its growth prospects, optimise its capital structure and enhance its ability to weather external economic shocks.
The EBRD offers an innovative financing structure, being one of the few lenders in the market eligible to provide Tier II facilities on commercial terms to banks such as CIB.
EBRD First Vice President Jürgen Rigterink said: “The EBRD is delighted to sign this facility with our longstanding private sector partner, CIB. This subordinated loan will contribute to reinforcing CIB’s overall capital base and support the stability of a systemically important market player in Egypt.”
The Chairman of CIB, Hisham Ezz El Arab, said: “Our strategic partnership with the EBRD has proven to be a very valuable asset to CIB, especially in the most challenging of times. This subordinated loan will not only help CIB further boost its capital base but also support our ambitious growth plans and unlock numerous opportunities the Egyptian market has to offer.”
Since 2012 the EBRD has invested more than €11 billion in 169 projects in Egypt, with almost 80 per cent of its portfolio in private sector projects. The development of Egypt’s financial sector remains an integral pillar to the Bank’s main objectives in the country.