Cairo – Mubasher: The Commercial International Bank – Egypt (CIB) has signed a memorandum of understanding (MoU) with the UK’s impact investor and development finance institution CDC Group.

Under the MoU, CDC Group will provide $100 million of Tier II capital to CIB, the largest private sector bank in Egypt with the largest market capitalisation, according to a statement on Monday.

The facility agreement, pending regulatory approvals, “will add diversity to CIB’s capital base”, supporting the bank’s expansion plans in Egypt and across Africa.

The MoU was signed on the sidelines of the UK-Africa Investment Summit, held in London.

Commenting on the MoU, Nick O’Donohoe, CEO of CDC, said, “In strengthening the capacity of CIB, CDC is supporting the bank to grow its lending to domestic companies, particularly in sectors that contribute to economic growth, job creation and retention.”

For his part, Hisham Ezz Al-Arab, chairman and managing director of CIB, remarked, “Being the largest private sector bank in Egypt with the largest market cap, we are honoured to be working with a counterparty that holds the same high standards as CIB.”

“Given CDC’s proven track record of adding value across Africa and South Asia, we are optimistic of establishing a partnership that will not only benefit the Bank, but also the Egyptian economy as a whole,” Ezz Al-Arab added.

It is noteworthy that during the first nine months of 2019, CIB reported a net profit of EGP 8.537 billion, compared to EGP 7.019 billion in the year-ago period, including minority shareholders’ rights.