EBRD, IFC invest $200 mln in Banque du Caire’s IPO

The European Bank for Reconstruction and Development (EBRD) is investing $100 million in Banque du Caire’s initial public offering, supporting Egypt’s privatisation programme and efforts to deepen its capital markets, the development bank said in a statement on Monday.

The investment is being made alongside a $100 million commitment from the International Finance Corporation (IFC), bringing the two multilateral lenders’ combined investment in the offering to $200 million, the EBRD said.

The IPO involves the listing of 45 per cent of Banque du Caire’s common shares on the Egyptian Exchange (EGX), marking a milestone in Egypt’s state ownership and privatisation programme and aiming to expand private-sector equity participation in the banking sector, according to the statement.

The EBRD said its investment would support Banque du Caire’s transition to listed-company standards, including improvements in corporate governance, climate-related, environmental and social practices, digitalization, and cybersecurity.

The bank will also provide technical cooperation to support Banque du Caire’s digital transformation, cybersecurity, and environmental and social risk-management capabilities, the statement said.

A resounding success

“Banque du Caire’s IPO is a resounding success,” Francis Malige, EBRD managing director for financial institutions, said in the statement, describing the transaction as a strategic milestone for Egypt’s privatisation programme.

“… not only a landmark transaction for Banque du Caire but also a strategic milestone for the broader national privatisation programme.” Malige added.

The EBRD invests as a long-term institutional investor to support broader private ownership, attract institutional capital and reinforce confidence in Egypt’s structural reform agenda, Malige said.