Egypt’s Commercial International Bank (CIB), the largest private bank in the country, has received $100 million in tier 2 capital under a financing agreement with UK government’s development finance arm, CDC Group.
Through the 10-year facility, CIB aims to strengthen its capital base ahead of the expected economic recovery.
The facility, for which CIB and CDC signed an MoU earlier this year at the African Investment Summit in London, is in line with CIB’s “ongoing plan to further consolidate its capital base and support the bank’s future growth plans as we all look to get out of these unprecedented times stronger,” said CEO Hussein Abaza.
What is tier 2 capital? Tier 2 capital forms a part of a bank’s capital reserves. Unlike core capital listed as tier 1 (such as reserves and equity capital), tier 2 is comprised of assets considered more unreliable or risky due to being more illiquid or being harder to quantify.