Egyptian CIB borrows $150 mln from EBRD to cushion against economic risks

Ahram Online , Sunday 19 Nov 2023

The Egypt-listed Commercial International Bank (CIB) has secured a $150 million loan from the European Bank for Reconstruction and Development (EBRD) to cushion against economic risks, according to a bourse statement on Sunday.

CIB.
CIB branch.

 

 

The loan has a maturity of 10 years and will be used to optimize the bank’s capital structure, boost its growth, and “act as an extra cushion against any potential external economic hindrances,” according to the statement.

According to Jurgen Rigterink, EBRD's first vice president, the loan will support the expansion of CIB’s lending activity, especially in the green economy.

CIB, the biggest private bank in Egypt, has been coping with the various challenges facing the Egyptian economy.

In October and November, S&P Global and Fitch Solutions downgraded the bank’s credit rating to B- from B, along with other major state-owned Egyptian banks.

The two credit rating agencies downgraded Egypt’s rating from B to B- and labeled the outlook as stable.

It is worth noting that the credit rating agency Moody’s took the same action for the same three banks earlier this month, downgrading their rating to Caa1 from B3.

Established in 1975, CIB is Egypt’s leading private sector bank offering a broad range of financial products and services to enterprises of all sizes, institutions, households, and high-net-worth individuals.

The bank's total assets reached EGP 635.83 billion (around $20.6 billion) in 2022, up from EGP 498.23 billion in 2021.

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