🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

CIB secures $148 million package to bolster Egypt's economy

EditorRachael Rajan
Published 30-11-2023, 08:22 pm
© Reuters.
COMI
-

Commercial International Bank of Egypt (CIB) has secured a significant $148 million financial package from the African Development Bank Group to address the foreign currency shortages that have been exacerbated by the COVID-19 pandemic and ongoing geopolitical tensions, particularly the Russia-Ukraine conflict. This strategic funding is aimed at strengthening CIB's capital base and enhancing its ability to extend long-term loans to various sectors within Egypt's economy.

The comprehensive package includes a $10 million line of credit and a $90 million subordinated loan, each with a ten-year tenure. Additionally, CIB will have access to trade finance lines totaling $48 million for a period of 3.5 years. These funds are intended to bolster CIB's lending capabilities to its diverse clientele, which spans retail customers and corporates across its network of over 215 branches.

The initiative is expected to have a multi-faceted impact on Egypt's economic landscape. By providing long-term resources to businesses, the package aims to stimulate economic growth, enhance competitiveness and productivity, increase government and export revenues, and foster job creation, with an emphasis on opportunities for women. This move is particularly significant for small and medium-sized enterprises (SMEs) and major enterprises, which are key drivers of economic activity in the country.

InvestingPro Insights

In light of the recent financial package secured by the Commercial International Bank of Egypt (CIB) from the African Development Bank Group, InvestingPro data reveals some compelling metrics that may interest investors. CIB's market capitalization stands at a robust $7.51 billion, with a Price-to-Earnings (P/E) ratio of 10.06, indicating a potentially undervalued stock given its earnings. Furthermore, the bank has experienced a remarkable revenue growth of 61.29% over the last twelve months as of Q3 2023.

InvestingPro Tips offer additional insights, highlighting that CIB has been accelerating its revenue growth and is trading at a low P/E ratio relative to near-term earnings growth. These factors combined with the bank's high return on invested capital suggest that CIB is well-positioned to leverage the new funding to further enhance its financial stability and growth prospects.

For those interested in a deeper analysis, InvestingPro offers more tips on CIB, including its position as a prominent player in the Banks industry and the expectation of net income growth this year. With a special Cyber Monday sale, investors can now subscribe to InvestingPro at a discount of up to 60% off. Additionally, using the coupon code sfy23 will provide an extra 10% off on a 2-year InvestingPro+ subscription, unlocking even more expert tips and insights. There are 15 additional InvestingPro Tips available for CIB, which can be accessed by subscribers looking to make informed investment decisions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.