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Sunday, 8 March 2020

EBRD reportedly interested in Banque du Caire stake

PRIVATIZATION WATCH- EBRD still interested in Banque du Caire stake: The European Bank for Reconstruction and Development has joined the Sovereign Fund of Egypt and Abu Dhabi Development Holding as the latest to show interest in Banque du Caire’s planned IPO on the EGX, Bloomberg reports, quoting unnamed sources. Janet Heckman, former managing director for the Southern and Eastern Mediterranean at the development bank, told Enterprise back in 2018 that among companies listed in the state privatization program BdC was of particular interest to the bank. The EBRD declined to comment on the latest story. Informed sources told local media last week that the SFE and ADDH are looking to acquire a stake in the company during the IPO.

Background: BdC is targeting to raise some USD 500 mn from an offering that is planned to hit the market in April, although guidance on timing emerged before the covid-19 market meltdown began in earnest. Unnamed sources had said a decision on the timing would be reached in two weeks. The offering will see 20-30% of the banks’ total shares sold on the exchange, the majority of which will be earmarked for so-called ‘anchor investors.’ A single investor will not be permitted to own more than 5% of the bank, Chairman Tarek Fayed said in a recent interview cited by Bloomberg.

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