Cairo – Mubasher: The Commercial International Bank (CIB) will sign an agreement with the International Finance Corporation (IFC), the private sector investment arm of the World Bank, on Tuesday to obtain a subordinated loan of $100 million.
The subordinated loan qualifies as tier two capital of the Central Bank of Egypt (CBE), and has a term to maturity of 10 years, the bank added in a statement to the Egyptian Exchange (EGX).
The CIB stressed that this loan will not affect shareholders’ equity, but it will contribute to bolstering the bank’s capital and financial position, as capital ratio will surge to 19.10% from 18.05%.
This loan will help to cover any potential risks resulted from gaps between assets and equity, the bank continued.
In November, the CIB announced that it would sign an agreement with the European Bank for Reconstruction and Development (EBRD) to get a subordinated loan of $100 million.
It is worth mentioning that the bank posted a net profit of EGP 2.08 billion for the three months ended September 2017, up from EGP 1.7 billion in the prior-year period.
