EBRD to possibly acquire minority stakes in 2 state-owned banks



Wed, 29 Nov 2023 - 12:23 GMT


Wed, 29 Nov 2023 - 12:23 GMT

CAIRO – 28 November 2023: The European Bank for Reconstruction and Development (EBRD), is seeking to acquire shares in a number of Egyptian companies within the government Initial Public Offering (IPO) program

This is according to local media reports citing EBRD’s Managing Director for the Southern and Eastern Mediterranean (SEMED) region, Heike Harmgart.

Harmgart said that discussions are currently underway with The Sovereign Fund of Egypt (TFSE) to discuss the possibility of purchasing a minority stake in the United Bank and the Banque du Caire, but EBRD is awaiting the announcement of the percentages or shares that will be offered in the two banks.

She stressed that the EBRD supports the government's privatization program in general and realizes its importance in achieving growth rates of the Egyptian economy and its role in increasing foreign cash flows and increasing revenues.

According to a recent report from the cabinet's Information and Decision Support Center (IDSC) published earlier this month, Egypt is preparing for a significant increase in revenue in the upcoming fiscal year 2023/2024. The country expects to generate up to LE 70 billion, which is equivalent to 0.6 percent of the gross domestic product (GDP), through its IPO program.

The government is actively working on the implementation of a well-defined IPO program specifically designed for government offerings. The plan is to make 35 companies go public or sell stakes to strategic investors by the first half of 2024.

Egypt's TFSE already reported that it received $5 billion from the sale of state shares in 13 companies between March 2022 and July 2023.



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