EFG-Hermes and HSBC selected as consultants for Banque du Caire IPO

Reuters , Sunday 30 Oct 2016

People stand in the line to make withdrawals outside Cairo Bank in downtown Cairo (Reuters)
People stand in the line to make withdrawals outside Cairo Bank in downtown Cairo (Reuters)

EFG-Hermes and HSBC have been selected as consultants for the initial public offer of state bank Banque du Caire, Egypt's Deputy Finance Minister told Reuters on Sunday.

"There is no date selected yet for the offering," Deputy Finance Minister for fiscal policies Ahmed Kouchouk said.

Central Bank Governor Tarek Amer said in March that the government planned to offer 20 percent of Banque du Caire by increasing its capital through an initial public offering.

A market official with direct knowledge of the issue said the offering will take place during the first half of 2017.

Banque du Caire, established in 1952, has a capitalisation of 1.6 billion Egyptian pounds ($180 million). The bank has around 240 branches and units around the country.

Egypt is struggling to revive its economy since a popular uprising in 2011 drove away tourists and foreign investors.

The initial public offering of Banque du Caire, along with other state companies and banks, is expected to bring in badly needed dollars to shore up the country's foreign reserves, which totalled $19.592 billion at the end of September, down from $36 billion five years ago.

Egypt is in the process of securing a $12 billion, three-year, International Monetary Fund programme but must first make some painful economic reforms including fuel subsidy cuts and a devaluation of the pound, which has been held artificially strong at 8.78 per dollar. 

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