EBRD Is Latest Firm to Eye Stake in Egypt’s Banque du Caire

(Bloomberg) -- European Bank for Reconstruction & Development is the latest institution seeking to buy a stake in Banque du Caire as part of the state-owned lender’s initial public offering, according to a person familiar with the matter.

The person asked not to be identified because the discussions are private. London-based EBRD declined to comment.

The lender joins Abu Dhabi Development Holding Co. and Egypt’s sovereign wealth fund, who are pursuing a combined stake of their own as a strategic investor in the IPO, and whose interest was confirmed by two people familiar with the subject.

Ayman Soliman, the Egyptian fund’s chief executive officer, said Wednesday that his institution and an unidentified international investor are in talks with Banque du Caire. He expects an agreement by the end of March.

ADDH, which was established in 2018 as a public joint stock company and holds a portfolio of state-owned enterprises spanning utilities to health care, declined to comment.

Egypt and the United Arab Emirates last year agreed a $20 billion investment platform to put money into a range of sectors and assets. Egypt’s sovereign fund and ADDH are set to run it.

Banque du Caire wants to raise $500 million by offering a stake of 20% to 30%, Chairman Tarek Fayed said Wednesday in an interview. Anchor investors will be offered part of that stake, with a cap of about 5% each of the total ownership, he said.

The bank is in discussions with regional and foreign financial institutions and funds for the sale, Fayed said, declining to identify any of them. Banque du Caire is owned by Banque Misr, but run by an independent board.

To contact the reporter on this story: Mirette Magdy in Cairo at mmagdy1@bloomberg.net

To contact the editors responsible for this story: Stefania Bianchi at sbianchi10@bloomberg.net, Michael Gunn, Mark Williams

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