Emerging markets investment bank Renaissance Capital has re-initiated coverage of CIB, which it calls the “best exposure to Egypt’s structural growth story.” Renaissance Capital said in a note yesterday that it believes “CIB is well positioned to benefit from the recovery in the Egyptian economy, supported by its solid fundamentals, strong corporate franchise and a rising share of the high-yielding retail category” and that it is expected to have a sector-leading return on equity over the next three years. It also says the bank is not exposed a material risk of depreciation and, thus, offers an attractive opportunity for high-quality exposure to Egypt, through its GDRs. Rencap has assigned a “buy” rating on CIB’s GDRs (with a target price of USD 4.70 per GDR) and a “hold” on the bank’s local shares (target price: EGP 51.20 per share). Rencap analyst Balram Ramesh notes that the GDR is already pricing in an exchange rate of EGP 12.40 to the USD.