National Bank and Banque Misr to equally acquire 40% of stocks in IBAG

Sada El Balad

EGYPT – The National Bank of Egypt investment arm, Al-Ahly Capital Holding (ACH), and Banque Misr have inked an agreement to equally acquire 40 percent of the stocks of the International Business Associates Group for Money Transfer (IBAG), the Western Union’s representative in Egypt.

Chairman of the National Bank of Egypt Hisham Okasha said that the move comes within the bank’s efforts to merge customers targeted into the banking sector as well as using official means for transferring funds in order to increase the flow of foreign currency into Egypt especially transferred by Egyptians working abroad.

In statements, Chairman of Banque Misr Mohamed el Etribi hailed the partnership that aims at merging unofficial transfer sector into the banking sector in Egypt as well as enhancing financial inclusion as part of the bank’s role to support the Egyptian economy.

This comes after Misr Capital announced that it is currently working on five securitised debt instrument and sukuk issuances worth a total of over EGP7 billion (US$447.03m), according to the company’s Managing Director Khalil El-Bawab.

The company is expected to conduct its offerings during the fourth quarter (Q4) of 2020 and early next year.

El-Bawab said that there are two offerings set for issuance before the end of this year, one of which is worth EGP1.5 billion (US$95.79m), with another valued at EGP2.5 billion (US$159.65m). He added that that the company is currently also working on a green bond issuance.

El-Bawab told Daily News Egypt that Misr Capital is working on a corporate bond offering. This has been delayed, however, due to the repercussions of the novel coronavirus (COVID-19) pandemic, and its effects on the credit rating of companies.

He also said that the company is constantly striving to make the importance and utility of this type of financing for companies on their financial position very clear.

El-Bawab added that the importance of sukuk will become clearer following the Egyptian state’s launch of its sovereign sukuk offerings.

He said that there is a promising opportunity awaiting the Egyptian sukuk market next year. Furthermore, Misr Capital aspires to develop the fixed income market, especially the secondary ones, as it’s working with Sarwa Capital to launch a sukuk offering for Amer Group. This is set to take place early next year, due to some delays in the process, El-Bawab stated.

Misr Capital seeks to become the largest asset manager and investment bank in Egypt, working on managing funds for Banque Misr and others according to a three-five-year plan.

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