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Sunday, 5 July 2020

CIB gets USD 100 mn in tier 2 capital from UK investment group CDC

DEBT WATCH- UK’s CDC provides CIB with USD 100 mn in tier 2 capital: Leading private sector bank CIB has received USD 100 mn in tier 2 capital under a financing agreement with UK government’s development finance arm, CDC Group, according to a British embassy statement. The facility, for which CIB and CDC signed an MoU earlier this year at the African Investment Summit in London, is in line with CIB’s “ongoing plan to further consolidate its capital base and support the bank’s future growth plans as we all look to get out of these unprecedented times stronger,” said our friend CEO Hussein Abaza.

What is tier 2 capital? Tier 2 capital forms a part of a bank’s capital reserves. Unlike core capital listed as tier 1 (such as reserves and equity capital), tier 2 is comprised of assets considered more unreliable or risky due to being more illiquid or being harder to quantify.

Advisors: Sharkawy & Sarhan Law Firm advised CDC Group on the agreement.

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