Arab Investment Bank Acquisition By Egypt’s Sovereign Fund and EFG Hermes Pending Central Bank Approval

The Sovereign Fund of Egypt (TSFE) and Egypt-based EFG Hermes Holding (EFG Hermes) have signed agreements to acquire 76% of Egypt’s Arab Investment Bank (AIB). Although approved by the Egyptian cabinet on the 19th of May 2021, the transaction is pending final approval from the Central Bank of Egypt and is subject to a number of conditions. The acquisition will be settled via a capital increase that will boost AIB’s paid-in capital up to EGP 5 billion (USD 320 million). AIB’s majority shareholder at present, National Investment Bank, will retain the remaining 24% by purchasing minority interests’ shares.

Why it Matters?

Chairperson of TSFE and Minister of Planning and Economic Development, Dr Hala El Said, stated that the acqui...