The extraordinary general assembly of the Arab Investment Bank approved on Sunday, Oct. 10, the subscription of the company and the subsidiary fund to increase the bank's capital.
Misr Italia will use the value mentioned in the agreement to refinance its commercial project “Garden 8 Mall” in New Cairo, which includes a group of retail brands and a chain of restaurants on an area of 47,000 square meters.
The company added that this capital contribution from Vortex Energy will allow Ignis to own and operate a growing share of the projects that it develops.
However, CEO of Hermes refused to give details about the amount of liquidity available to the group, which is the largest investment bank in the Middle East.
The acquisition will be structured as a capital increase that will increase the paid-in capital of the Bank to LE 5 billion, making it compliant with the regulatory requirements of the Egyptian Banking Law.
EFG Hermes' share in the bank will become 51 percent, and the share of Egypt's sovereign fund through the Egypt Financial Services and Digital Transformation Sub-Fund, which is wholly owned by it, is 25 percent, while the National Investment Bank maintains 24 percent after the increase capital.
Minister of Planning and Economic Development Hala al-Said witnesses signing of MoUs between Sovereign Fund of Egypt on one hand and EFG Hermes and GEMS on the other hand. Press Photo
This came in a statement issued by the company, Monday, in response to the stock market’s inquiries regarding the deal to acquire the financial group Hermes and Egypt's sovereign fund of a 76 percent stake in the Arab Investment Bank.
The company added in a statement today, Tuesday, that it played the role of the single-issue manager and financial advisor in the first issue amounting to LE 700 million.
EFG Hermes Finance and GB Capital will each hold a stake of 37.5 percent of the company. Tokio Marine Group, a world-renowned leader in insurance and reinsurance and the largest general insurer in Japan will own the remaining 25 percent.
EFG Hermes' finacnial indicators revealed accomplishing revenues of LE 2.98 billion during the first six months of 2020, down from LE 3.16 billion during the same months of 2019.
In exclusive statements to MENA, Head of Research at EFG Hermes Ahmed Shams El Din said this is considered the first hike in foreign currency reserves since the outbreak of COVID-19 in March.
Under the deal, Hermes will own not less than 51 percent of the bank's capital while the fund will own not less than 25 percent.
EFG Hermes clarified that this comes as part of Premium International two-year program to issue LE 2 billion ($162 million), in securitisation bonds.
"Betabs Egypt" is scheduled to create a new technology platform of its kind to provide electronic and digital payment services.
During the second quarter of 2019, the company's profits surged to LE 306.5 million, compared to LE 213.5 million during the same quarter of 2018.
EFG Hermes announced Egypt Education Fund focused on Egypt’s K-12 sector was oversubscribed with total commitments of $119 million in its first close.
Hermes is also looking to enter a new market in Asia or Africa within a year, Karim Awad told Reuters in an interview.
Hermes financial indicators showed that the company reached standalone profits of LE 190.89 million, compared to LE 178.12 million, with an increase of 7.2 percent.
EFG Hermes acted as Sole sole Global global Coordinator coordinator and Bookrunner bookrunner on the transaction .