Mubasher TV
Contact Us Advertising   العربية

Egypt’s CIB to get $100m loan from EBRD Tuesday

Egypt’s CIB to get $100m loan from EBRD Tuesday
The deal involves a $100 million subordinated loan
CIB
COMI
-3.05% 80.00 -2.52

Cairo – Mubasher: The Commercial International Bank – Egypt (CIB) is set to sign a deal with the European Bank for Reconstruction and Development (EBRD) on Tuesday.

The deal involves a $100 million subordinated loan that will be given to CIB.

“The subordinated loan qualifies as Tier II capital under the recently modified regulations of the Central Bank of Egypt, and has a term to maturity of 10 years,” CIB said in a statement.

The loan comes as part of CIB’s active capital management strategy, enabling it to pursue and explore available opportunities and maintain a sustainable and comfortable capital base that “is less vulnerable to external factors.”

The “subordinated loan will not cause any dilution of equity and will enhance CIB’s already strong capital ratio from 16.95% to 18.05%, thus, hedging the Bank against any potential mismatches between assets and equity, as well as supporting  CIB’s future growth plans,” the bank highlighted.

CIB last reported EGP 2.08 billion in profits in the third quarter of 2017, a rise from EGP 1.7 billion in the year-ago period, whereas nine-month profits grew to EGP 5.6 billion from EGP 4.45 billion.

By 10:42 am Cairo time, CIB’s stock slipped 0.05% to EGP 76.16.

Last week, MubasherTrade Research said it maintained its Sell/Moderate Risk rating for CIB’s stock along with its price target (PT) at EGP 76 per share.