The extraordinary general meeting of the Arab Investment Bank Assembly (AIBank) headed by Minister of Planning, Hala Al-Saeed, decided on Tuesday that it is the last day to repay the first tranche to increase the bank’s capital. The tranche is worth EGP 500m.
The assembly had previously decided to increase the bank’s paid up capital by EGP 800m to take its total up to EGP 1.840bn.
The second tranche, which is worth EGP 300m, is expected to be repaid before the end of March 2020.
The two increases will be distributed to shareholders according to their shares, as the available balance for the Union of Arab Republics will be used in the first and second tranches to increase the paid up capital.
The National Investment Bank accounts for 91.42% of the shares of AIBank after the increase, with a number of 168,212,8 shares worth EGP 1,682,128m, and a nominal value of EGP 10 per share.
The share of the Union of Arab Republics after the increase is 8.58% with 15,787,2 shares, worth EGP 157,872, with a nominal value of EGP 10 per share.
The extraordinary general assembly of the bank has approved increasing the authorised capital to EGP 2bn.
According to Omayma Farahat, the chairperson and managing director of the bank, increasing the capital base of the bank is in line with the important economic reform policies presently taken by the state to support banks’ financial positions.
She added that this increase also helps the bank to support its financial position, as well as its capital base, which would improve the bank’s competitive ability in the banking market and enable it to face market challenges, as well as international and local regulatory standards.
Moreover, Farahat pointed out that increasing the bank’s capital is also in line with the bank’s strategy which aims to expand and distribute its portfolio across several business sectors and economic activities, including retail banking, major corporates, joint loans, and SMEs, all of which would help further development and support the national economy.