Arab Finance: International Finance Corporation (IFC) announced an investment of $100 million in Banque du Caire’s initial public offering (IPO), representing a 7% equity stake, according to an emailed press release.
IFC’s shareholding will reinforce the EGX-listed lender’s capacity to expand financing for businesses and households across the country.
Private sector businesses, including micro, small, and medium-sized enterprises (MSMEs), need access to finance to expand and create job opportunities in Egypt. This segment accounts for more than one-third of the country's GDP and employs nearly 40% of its workforce.
Leveraging IFC’s investment, Banque du Caire is expected to more than double the number of customers it finances from about 899,000 to 1.9 million by 2030. This is in addition to increasing its total lending from about $5 billion to $8.9 billion.
Ary Naïm, IFC’s Division Director for North Africa and the Horn of Africa, commented: “Through our partnership, we aim to help businesses access the finance they need to grow, invest, and create more and better jobs, while mobilizing private capital to support Egypt’s development priorities.”
The investment is made jointly with the European Bank for Reconstruction and Development (EBRD), which is also participating in the IPO with $100 million, bringing the total investment made by both multilateral development banks to $200 million.
This aligns with the 2023–2027 Country Partnership Framework (CPF) for Egypt, including its focus on more and better private sector jobs and increased private sector participation. It builds on IFC’s 50-year partnership with Egypt and the World Bank Group’s broader work to help create the conditions for greater private investment.
Since fiscal year (FY) 2021/2022, the World Bank Group has mobilized nearly $6.7 billion in private capital for Egypt.
Banque du Caire commenced trading on the Egyptian Exchange (EGX) on Monday, November 2, following the completion of a 45% stake offering worth EGP 36.371 billion, marking the largest public offering in the history of Egypt's capital market.
