Egypt has signed an agreement for conventional and Islamic loan worth $2 billion with international and regional banks. It is reported that the deal has been coordinated by Emirates NBD Capital and First Abu Dhabi Bank.
The two UAE banks are the joint coordinators and lead managers of the deal. The conventional and Islamic loan was approved by the parliament, a statement said. It is reported that Egypt initialised the loan deal with Emirates NBD Capital and First Abu Dhabi Bank in July 2020. The country seeks to obtain a one year loan worth $2 billion in two tranches to bride its 2020-2021 budget gap created by the coronavirus pandemic.
A banking source told the media, “When they came to the market…on the back of COVID, the pricing was dislocated, the comparables were a bit on the high end. But they managed to convince the banks to commit to a tight level. And now…,it is in line with the market’s pricing.”
More recently, Abu Dhabi Commercial Bank was launched in Egypt. It is the fifth largest bank in the Gulf with assets worth Dh 405 billion. Ihab Al-Swireky, managing director and CEO of ACDB Egypt, told the media, “The bank’s strategy is focused on five basic axes, which are achieving growth by taking advantage of the opportunities available in the local markets, sustainability through developing the deposit base, achieving the highest levels of quality and efficiency in all of our financial products and banking services, and dealing with any risks that we might face.”