- CDC Group’s loan will support the Bank in sustaining its exceptional capital position and growing the foreign currency component in the bank’s capital base, as it plans to expand in Egypt and across the continent
- CDC’s capital commitment aligns to UN Sustainable Development Goal 8: to support decent work and economic growth
CDC Group, the UK’s impact investor and development finance institution, has signed an MoU at the UK-Africa Investment Summit in London to provide US$100m of Tier 2 capital to Commercial International Bank (Egypt) (CIB) subject to obtaining all necessary regulatory approvals. This MoU comes less than a year after the regulator granted CDC approval to provide Tier 2 capital to the Egyptian banking sector.
CDC’s capital facility will add diversity to CIB’s capital base and support the Bank’s ambitious growth plans in Egypt and across Africa.
CIB is the leading commercial bank in Egypt and is listed on the Egyptian, London and New York stock exchanges with a market capitalisation of US$7.7billion. It provides affordable access to finance to over a million customers.
Nick O’Donohoe, Chief Executive of CDC, said:
“We know that strengthening capital markets and banking ecosystems on the continent is one of the key ways to promote economic prosperity.
“In strengthening the capacity of CIB, CDC is supporting the bank to grow its lending to domestic companies, particularly in sectors that contribute to economic growth, job creation and retention. Local businesses will be able to access the finance they need to grow, improve their production and ultimately benefit business owners, employees, and those they serve with access to affordable goods and services.”
Commenting on the MOU, Hisham Ezz Al-Arab, Chairman and Managing Director of CIB, said:
“I am extremely pleased to announce the finalisation of the MoU with CDC. Being the largest private sector bank in Egypt with the largest market cap, we are honoured to be working with a counterparty that holds the same high standards as CIB. Given CDC’s proven track record of adding value across Africa and South Asia, we are optimistic of establishing a partnership that will not only benefit the Bank, but also the Egyptian economy as a whole.
“We believe that this Tier II Capital Facility is only the beginning of what will be a long and fruitful working relationship between two leading institutions that are strong advocates of both British and Egyptian values.”
CDC is among the first bilateral development finance institutions to be given clearance to provide Tier 2 capital to Egypt’s banking sector. CDC has invested in Egypt since 2003 and sees the country as an increasingly important focus for its investment activities. It has provided over US$115 million in investment to 20 companies in the country that collectively employ over 9,000 people.
ENDS
Media Contact:
CDC Group
Andrew Murray-Watson
Email: amurray-watson@bii.co.uk
Tel: +44 (0)7515695232
About CDC
CDC Group is the UK’s first impact investor with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.
CDC is a leading player in the fight against climate change and a UK champion of the UN’s Sustainable Development Goals – the global blueprint to achieve a better and more sustainable future for us all.
The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8bn. This year CDC will invest over $1.5bn in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.
CDC is funded by the UK government and all proceeds from its investments are reinvested to improve the lives of millions of people in Africa and South Asia.
CDC’s expertise makes it the perfect partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.
About CIB
Established in 1975, Commercial International Bank (CIB) – Egypt is Egypt’s leading private-sector bank. Each of CIB’s 7000 employees is dedicated to achieving the bank’s mission: delivering a distinctive customer experience through innovation and big data analytics to provide customer-centric solutions and services that meet their needs. With a well-established network of over 200 branches, first-rate remote channels, and digital solutions, CIB provides individuals, households, high-net-worth individuals, large corporations, and small businesses with exceptional, 24-7 services.
CIB has consistently been recognized as the most profitable bank operating in Egypt and the bank of choice for over 500 of Egypt’s largest corporations. CIB was named the World’s Best Bank in Emerging Markets by Global Finance in 2018, one year after it was awarded the same title by Euromoney. CIB is also the first institution in the Middle East to be the subject of a business case study as part of the London Business School’s curriculum for graduate students. In 2019, Bloomberg included CIB in its “Gender Equality Index”, making it the first company in Egypt and Africa to be listed on the index, which includes 230 companies from 36 countries representing 10 sectors.
For further information about CIB products and services, please visit our website cibeg.com
