EFG-Hermes to create a new leading investment bank in the Arab world. (photo: Reuters)
Egypt's EFG Hermes said on Friday it had sealed an agreement first announced in March to form a region-wide investment bank with Qatar's Qinvest.
Qinvest will control 60 percent of the new bank, which will be called EFG Hermes Qatar, and provide $250 million to increase its capital.
EFG-Hermes will control the remaining 40 percent and have the right to sell its shareholding to QInvest at any time after 12 months but before 36 months from the signing for 1 billion Egyptian pounds ($165.4 million).
The alliance has "the aim of creating a leading investment bank with operations in the Arab world and beyond, comprehensively covering the Middle East, Africa, Turkey and South and South East Asia," EFG Hermes said in a news release.
EFG Hermes will have to get approval from shareholders and regulators before the bank can be formed.