Banque Misr Considers a EGP 3 Bln Islamic Finance To Misr Financial Investments

Banque Misr studies providing long-term sharia-compliant finance worth EGP 3 billion to Misr Financial Investments which is owned by the bank and is working in foreign investments and assets management.

The mudaraba and musharaka finance will be directed to restructure the company for a term from 7 to 10 years, sources told Amwal Al Ghad.

The bank is still studying the project and has not decided yet whether other banks will contribute in financing the project or not, especially under the current banking law that does not allow banks to finance a customer with more than 25% of its capital and Banque Misr’s capital is less than EGP 5 billion.

Sources said Misr Financial Investments acquires shares in many companies such as 99.9% share in Banque Du Caire, 43.58% share in National Company for maize products, 39.41% share in Future for Urban Development, 15.2% share in Alexandria Mineral Oils Company (AMOC), 10% share in Middle East Oil Tankage and Pipelines Co. (MIDTAP), 7.5% share in MISR Cement Company (Qena), 4.16% share in Alexandria Fertilizers Co. (AlexFert) and 3.06% share in Suez Cement Company.

Misr Financial Investments also manages two companies which are totally owned by Banque Mist namely; Misr El Amria Spinning and Weaving and Misr El Amria Co. for Real Estate Investment.

Misr Financial Investments was founded in accordance with Capital Market law no. 95 of 1992 and with the license no. 586 issued by the Egyptian Financial Supervisory Authority. The Company’s issued and paid-up capital reached EGP 1.5 billion.