The National Investment Bank (NIB) Board of Directors have agreed to increase Arab Investment Bank’s (AIB) capital by EGP 800m, according to Hala El-Said, Minister of Planning and Administrative Development and NIB Chairperson.
The investment, which will be paid in two tranches, was granted on the recommendation of the NIB’s investment committee.
El-Said said that the NIB’s share in this increase amounts to EGP 731.4m or 91.42%, which will take the AIB’s capital to EGP 2bn, with paid-up capital of EGP 1.84bn.
She added that the board has also approved the AIB’s updated strategic plan for 2019-2022, which includes launching new banking products, whilst improving and developing the bank’s internal work system and employees.
The updated plan aims to raise operational efficiency and risk management, credit management, governance and auditing, legal affairs and contracts.
Since her appointment as minister and, by extension, NIB chairperson, El-Said has reshaped the bank’s Board of Directors, including Egypt’s best economic and legal experts as members.
Earlier, Prime Minister Mostafa Madbouly issued Resolution No. 337 of 2019 to reconstitute the advisory committee overseeing the NIB’s restructuring work. A number of committees will also be formed, including the Investment Committee, in implementation of the rules of governance.
The investment committee has focused on strengthening and maximising the NIB’s national role, especially in the investment efficiency and distribution field at the national level. The committee has also contributed to the settlement of a large part of the bank’s debts.