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Fawry’s General Assembly considers approving EAEF loan to its microfinance arm

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Fawry’s General Assembly considers approving EAEF loan to its microfinance arm

Company’s General Assembly also discusses initial financing offer from Banque Misr valued at EGP 150m

The ordinary General Assembly of electronic payments platform, Fawry, will consider approving a loan provided by the Egyptian-American Enterprise Fund (EAEF) to the former’s subsidiary Fawry Microfinance, during its upcoming session on 31 December.

In a statement to the Egyptian Exchange (EGX), the company said that its General Assembly is considering approval of all the terms and conditions of the loan contract to be concluded. This includes the financing and guarantee documents stipulated in the contract.

The assembly is also considering amending the service provision contract concluded with Fawry Dahab for Electronic Services on 10 July 2019, in order to amend the service cost fee to 17.25%, instead of 15% of net revenues.

Also on the ordinary General Assembly’s agenda is the consideration of concluding netting contracts, including a contract to sell part of the company’s share in Fawry Dahab to Banque Misr. The bank is a shareholder and member of the company’s Board of Directors.

The meeting will also discuss an initial financing offer, with an authorised limit of EGP 150m, submitted by Banque Misr as the shareholder in the company, which will be used in accordance with the conditions of the contract.

With regard to the extraordinary general assembly’s activities, which will be held in the same session, it has been decided to consider increasing the company’s authorised capital from EGP 500m to EGP 1bn.

It will also discuss the increase in Fawry’s issued capital from EGP 353.652m to EGP 453.652m in nominal value in favour of existing shareholders through bonus issue, each according to the percentage of their individual contribution to the capital.

The bonus issue is an offer of free additional shares to existing shareholders.

A total of EGP 100m will be provided towards this increase, coming from the retained earnings and distributed over 200 million shares.

The extraordinary general assembly is also considering increasing the company’s issued capital from EGP 453.652m to EGP 853.652m, to be paid in cash at nominal value for the benefit of exisiting shareholders.

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