Egypt’s second largest bank, Misr, has hired an international bank to manage a $ 500 million medium-term syndicated loan to finance its growth through low-cost debt.
According to Misr Bank President Mohamed Eletreby, the partnership is to find banks to secure the loan she hopes to obtain in the third quarter.
“It is better to rely on international loans now because their interest rates are good. That’s why Bank Misr has decided to postpone its international bond issue next year, “said Eletreby.
Misr Bank plans to expand its operations as the Egyptian government continues to make radical economic changes to stimulate growth, reduce costs and reduce the weight of the public sector.
The bank seeks to increase its liquidity by selling part of its holdings in public sector companies and banks, including the Cairo Bank and Cairo Amman Bank, said Eletreby. Several international lenders have shown interest in buying the 10.78% stake they hold in Cairo Amman, and a decision is expected before the end of the year.
The bank also plans to close the sale of its 2.43% stake in Samba Financial Group in Saudi Arabia in the fourth quarter or first quarter of 2019, he added. The bank has already sold 30% of this stake.
