IFC, a member of the World Bank Group, is investing $100 million to strengthen the capital base of Commercial International Bank (CIB), a leading Egyptian private bank. The financing will support CIB’s growth strategy and help scale-up its lending to clients, including local enterprises, which will help ensure job preservation and create more jobs within various sector.
The financing marks IFC’s first subordinated loan to a local bank in Egypt, following recent regulations introduced by the central bank. This allows IFC and other international financial institutions to support the capital base of local banks to help them increase lending.
“A solid banking sector is key to driving economic growth and improving access to finance,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “The investment will help a long-term partner boost lending to different sectors including small and medium firms, while also helping to strengthen the country’s financial sector as a whole.”
CIB is Egypt’s largest private bank by assets and customer deposits, with a 194-branch network and 6,474 employees. IFC has had a long-standing relationship with CIB since 1993, pioneering investments and co-investments that have shaped the profile of Egypt’s financial sector over the last 24 years.
Egypt is among IFC’s largest investment portfolios in MENA. Between fiscal years 2006 and 2017, IFC’s investments in Egypt reached $2.9 billion, including financing mobilized from other investors.