Ashraf AboArafe
IFC, a member of the World Bank Group today announced the sale of a stake in Ahli United Bank Egypt (AUBE) through a tender offer.
IFC invested in Bahrain’s Ahli United Bank’s Egyptian subsidiary in 2006, supporting the group’s plans to expand across the Middle East and North Africa and helping to create a network of banks to provide a much-needed channel for private sector investment and to promote cross-border business.
Over the years, AUB successfully overhauled its Egyptian subsidiary by recapitalizing the bank, strengthening its operations, risk management, corporate governance and E&S practices, and introducing strong operational practices and policies that have set new and improved banking standards. Today AUB Egypt is among the country’s leading private sector banks and operates 42 branches across the country.
“Our partnership and cooperation have helped expand access to finance and boost the competitiveness of the Egyptian banking sector. IFC’s continuous engagement with AUB helped strengthen AUB Egypt and create more opportunities for Egyptian companies to access commercial funding to grow their businesses,” said Walid Labadi, IFC’s country manager for Egypt, Libya and Yemen.
“We remain strongly committed to supporting the Egyptian banking sector and aim to work together with our partners to unlock new markets and opportunities, with a focus on expediting financial inclusion and supporting the digital reform agenda,” Labadi said.
Egypt is a key partner for IFC in the MENA region. Over the last decade, IFC has invested and mobilized nearly $4 billion across different sectors of Egypt’s economy. In fiscal year 2020, IFC committed over $400 million across sectors, helping to create jobs and expand access to finance for entrepreneurs and smaller businesses, support innovations in the manufacturing sector, and provide stronger healthcare services during the COVID-19 pandemic.
* About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2020, we invested $22 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
