Banque du Caire and its majority shareholder Banque Misr have signed separate agreements with the EBRD and the IFC. Under them, each institution agreed to participate independently in the private placement tranche with a stake of up to 15.74%.
In a supplementary disclosure sent to the stock exchange, Banque du Caire said the number of shares allocated to each of them will follow the final price that emerges from the offering and the book-building mechanism for the private placement. The bank added that the agreements contain no voting agreements between the EBRD and/or the IFC on one side and Banque du Caire's main shareholder on the other.
QUALIFIED INVESTORS COMMIT TO FIRST TRANCHE
Banque du Caire and Banque Misr have also concluded investment agreements with several qualified investors. Each has independently committed to buy shares in the first tranche of the private placement at the final offering price, subject to conditions precedent and to the price set in the relevant agreement, which may differ from one investor to another. The other investors and their agreed percentages are Sustainable Capital at 18%, RWC Asset Management and RWC Asset Advisors at 11%, Waha Investments at 9%, and Helikon Investments at 25%.
LENDERS' EARLIER INTEREST AND THE FLOAT'S PATH
Both the EBRD and the IFC are long-standing lenders to Banque du Caire. The EBRD's historical facilities include senior loans for micro, small and medium-sized enterprises, a subordinated loan, and a facility under its Women in Business programme, while the IFC has separately partnered with the bank on climate finance.
The two institutions were reportedly circling a combined 10% stake in the bank's upcoming float. An EBRD official said its own slice could run as high as 5%, with the IFC expected to pick up the rest of the 10% once it formally joined the transaction. The agreements signed with Banque du Caire and Banque Misr provide for each institution to participate in the private placement tranche with a stake of up to 15.74%.
Both institutions were said to have submitted offers for minority stakes in March, among a handful of other international financial institutions, a senior government official said at the time, as the bank began its first round of fair-value meetings. The government was then looking at a 30-40% float, with trading initially pencilled in for April-June depending on the final valuation.
EFG Hermes and CI Capital are bookrunners for the offering. Baker McKenzie is advising on regulatory matters and Baker Tilly on financial matters for the Banque du Caire leg.
PRIVATISATION RECORD SETS THE BACKDROP
The proceeds of Egypt's privatisation programme have varied across its phases. The first phase raised approximately $3.11 billion and the second approximately $2 billion, while the third did not exceed $625 million. The fourth reached approximately $142 million, a decline of roughly 95% from the first phase to the fourth.
Measured against the programme's overall record, Egypt raised approximately $5.8 billion between June 2022 and June 2025. That is about 47.5% of its $12.2 billion target.
Related: Banque du Caire’s Egypt offering reached 42% first-day subscription coverage