NBE, Banque Misr expect EGP 500 billion proceeds from new CDs

Ahram Online , Sunday 7 Jan 2024

The National Bank of Egypt (NBE) and Banque Misr expect to collect over EGP 500 billion in proceeds through January from their newly introduced certificates of deposit (CDs), Mohamed El-Etreby, head of Banque Misr and chairman of the Federation of Egyptian Banks (FEB), said on Saturday.

Certificate of Deposits (CDs). iStock image.
Certificate of Deposits (CDs). iStock image.


The two banks had already collected EGP 17 billion in proceeds from the new CDs as of Saturday night, El-Etreby revealed during a phone call with Last Word (Kelma Akhira) TV show, hosted by Lamis El-Hadidy.

On Thursday, NBE and Banque Misr announced the issuance of new CDs, offering annual yields of 23.5 percent and 27 percent, respectively.

These certificates, which can be acquired through online banking services, mobile applications, and branches, require a minimum purchase value of EGP 1,000, with additional incremental options available.

Within just 24 hours of their introduction, the two banks collected EGP 11 billion in proceeds from the new CDs through online banking services, as Friday was a public holiday.

El-Etreby emphasized that due to their high cost to the banks, these certificates cannot be issued with a maturity period of three years, stating: "The 27 percent CDs cause us losses, but the two banks have a national role."

El-Etreby expressed confidence that the certificates would yield the desired results and contribute to the reduction of inflation.

He further anticipated that the subscription for the new CDs would continue until February, aligning with the maturity dates of other certificates offered in January 2022.

Notably, starting today, the two banks commence the repayment process for their one-year CDs issued in January 2022, totaling over EGP 500 billion in principal and carrying interest rates of 22.5 percent and 25 percent.


When asked about the completion date for the NBE's IPO, El-Etreby stated his expectation that the offering process would conclude by the end of the second quarter of 2024.

NBE's IPO is part of a broader plan by the Egyptian government to offer stakes in 35 state-owned companies to strategic investors by the end of June 2024, as outlined in the State Ownership Policy Document.

In February 2023, a list of 32 companies was released, which was later expanded to include three additional companies this year including; Eastern Company, Al Ezz Dekhila, and Telecom Egypt.

By June 2024, the government is poised to attract $5 billion from its IPO programme.

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