Sovereign Fund of Egypt Invests in Arab Investment Bank

Posted on 05/20/2021

EFG Hermes Holding S.A.E. is set to acquire a 51% stake of state-owned Arab Investment Bank (AIB). The Sovereign Fund of Egypt (TSFE) will also acquire a 25% stake in AIB, while the current owner, state-owned National Investment Bank (NIB), will retain 24%, the Egyptian cabinet disclosed after approving the acquisition.

AIB’s capital will be increased to five billion Egyptian pounds (roughly US$ 319 million). AIB was established in 1974 as a commercial and investment bank under the supervision of the Central Bank of Egypt. AIB started operation in 1978 with a capital of 627 million Egyptian pounds, which was increased to 1.8 billion Egyptian pounds, with participation of 91.4% from National Investment Bank and 8.5% from the Federal Arab Republics.

National Investment Bank was established in 1980 to finance government projects. The Egyptian government in 2020 informed the International Monetary Fund (IMF) it would restructure the NIB’s balance sheet through sales and swaps of assets, land, or shares in public companies to settle overdue debts.

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