Banque du Caire to in­ject EGP 5bn in syn­di­cated loans to sev­eral eco­nomic sec­tors: vice chair­per­son

THE BAN ’S SYN­DI­CATED LOAN PORT­FO­LIO IN­CREASED TO EGP 16. BN AT THE END OF ULY 2017

The Daily News Egypt - - Business - By Hos­sam Mounir

Banque du Caire aims to in­ject EGP 5bn in syn­di­cated loans for sev­eral eco­nomic sec­tors, ac­cord­ing to the vice chair­per­son of the bank, Soha Soli­man.

Soli­man told Daily News Egypt that the size of the syn­di­cated loans port­fo­lio at the bank reached EGP 16.426bn, with plans to in­crease it by EGP 5bn in the com­ing pe­riod.

She re­vealed the bank’s plan to achieve this goal, say­ing that Banque du Caire is con­sid­er­ing par­tic­i­pat­ing in the loan granted to the Egyp­tian Elec­tric­ity Hold­ing Com­pany (EEHC) with an ini­tial share of up to EGP 3bn, of the to­tal loan of EGP 19.4bn, which was ar­ranged by the Na­tional Bank of Egypt (NBE).

She added that the bank is also con­sid­er­ing par­tic­i­pat­ing in a joint loan for Royaa Real Es­tate In­vest­ment Com­pany with an ini­tial stake of ap­prox EGP 350m of the to­tal fund­ing ar­ranged by the Na­tional NBE and the Arab African In­ter­na­tional Bank worth EGP 3bn.

More­over, Soli­man said that Banque du Caire is con­sid­er­ing par­tic­i­pat­ing in the award­ing of a joint ven­ture to Alexan­dria Na­tional Re­fine and Petro­chem­i­cal Com­pany (ANRPC) with an ini­tial stake of up to $20m and EGP 100m of the to­tal fund­ing of $145m and EGP 551m, be­ing ar­ranged by the Na­tional Bank of Egypt. This comes be­sides the bank’s par­tic­i­pa­tion with the Arab Bank­ing Cor­po­ra­tion (ABC) fund­ing of $25m to the Egyp­tian Petro­chem­i­cal Com­pany, in which the bank will chip in $5m.

She added that Banque du Caire is also con­sid­er­ing grant­ing the Egyp­tian Na­tional Rail­ways a loan of $20m, of a loan of $65m ar­ranged by the NBE. The bank is also con­sid­er­ing grant­ing a work­ing cap­i­tal fa­cil­ity to the Beni Suef steel plant of the Abu Hashima Group with a value of EGP 200m. More­over, it is par­tic­i­pat­ing in a syn­di­cated loans ar­ranged by the Com­mer­cial In­ter­na­tional Bank for a telecom­mu­ni­ca­tions com­pany worth EGP 13bn. The bank’s ini­tial par­tic­i­pa­tion in this loan amounts to EGP 750m.

Soli­man stressed that Banque du Caire is keen to in­ject more funds to var­i­ous vi­tal sec­tors in the coun­try. The bank is keen to fi­nance the sec­tors of pe­tro­leum, elec­tric­ity, food in­dus­tries, real es­tate fi­nance, and con­struc­tion.

In a re­lated con­text, Soli­man pointed out that the bank has suc­ceeded in achiev­ing the to­tal credit bal­ances granted to com­pa­nies and small and medium en­ter­prises (SMEs) to about EGP 2.5bn at the end of Au­gust 2017,a growth rate of more than 212% com­pared to De­cem­ber 2016.

She added that the mi­cro­cre­dit port­fo­lio has reached about EGP 1.8bn at the end of July 2017, com­pared to EGP 1.2bn at the end of De­cem­ber 2016, bring­ing the to­tal mi­cro, small, and medium en­ter­prises (MSMEs) loans port­fo­lio to EGP 4.3bn at the end of Au­gust 2017.

Soli­man said that Banque du Caire is aim­ing to achieve sus­tain­able de­vel­op­ment by in­ject­ing its funds in favour of SMEs.The bank has al­ready suc­ceeded in pump­ing funds to this vi­tal sec­tor, worth 8% of the to­tal value of the bank’s to­tal credit port­fo­lio in July 2017. She added that the bank aims to boost fi­nances to this sec­tor to 20% in Jan­uary 2020, ac­cord­ing to the ini­tia­tive of the Cen­tral Bank of Egypt (CBE).

She added that Banque du Caire has a lead­ing po­si­tion as one of the fi­nan­cial in­sti­tu­tions in mi­cro­fi­nance since 2001, not­ing that the to­tal ac­cu­mu­lated loans that have been pumped to fi­nance these project amounted to over EGP 12bn since the bank started deal­ing with this seg­ment, which ben­e­fit­ted over 500,000 peo­ple.

Soli­man said that some 25% of the to­tal loans were granted in sup­port of women in the coun­try­side, as the bank is keen to in­crease the in­come of women en­trepreneurs to im­prove their stan­dard of liv­ing by pro­vid­ing ac­cess to var­i­ous fi­nan­cial ser­vices com­men­su­rate with their needs.

“Banque du Caire con­tin­ues to im­ple­ment its strate­gic plan and ex­pan­sion­ist pol­icy, to main­tain its lead­ing po­si­tion at the lo­cal and re­gional lev­els,” Soli­man added.

She ex­plained that the most im­por­tant axes of this plan are the de­vel­op­ment of the bank’s mar­ket share in var­i­ous fields through ex­pand­ing the fi­nanc­ing of MSMEs, find­ing in­no­va­tive bank­ing so­lu­tions and pro­vid­ing the nec­es­sary fi­nanc­ing for the own­ers of these projects, thus contributing to the de­vel­op­ment lo­co­mo­tive.

The bank’s strat­egy is to con­tinue to of­fer a range of in­no­va­tive and com­pet­i­tive bank­ing prod­ucts that meet the needs of cus­tomers in var­i­ous ar­eas of bank­ing and pro­vide the best level of bank­ing ser­vices to achieve cus­tomer sat­is­fac­tion.

She added that the bank’s de­vel­op­ment plan also in­cludes in­creas­ing its mar­ket share in the re­tail bank­ing sec­tor, while con­tin­u­ing to de­velop its branch net­work and bank­ing ser­vices to at­tract new cus­tomer seg­ments, thereby in­creas­ing the bank’s com­pet­i­tive­ness, main­tain­ing its lead­ing po­si­tion and de­vel­op­ing its mar­ket share within the bank­ing sec­tor.

In another re­gard, Soli­man pointed to the par­tic­i­pa­tion of Banque du Caire in the ini­tia­tive of the CBE or fi­nan­cial in­clu­sion to pro­vide an ac­count for ev­ery cit­i­zen, point­ing out that the num­ber of cus­tomers who opened new ac­counts dur­ing the week of fi­nan­cial in­clu­sion amounted to about 23,000 clients.

She said that the bank has also been keen to pro­vide a range of in­cen­tives to at­tract a new seg­ment of cus­tomers, pro­vid­ing spe­cial fa­cil­i­ties for small busi­ness own­ers, in ad­di­tion to open­ing bank ac­counts with­out ad­min­is­tra­tive ex­penses. The bank also is­sued credit cards of all kinds with­out ad­min­is­tra­tive ex­penses through­out the cam­paign pe­riod. It also worked on the nec­es­sary pro­ce­dures to achieve fi­nan­cial in­clu­sion by pro­vid­ing a range of in­no­va­tive prod­ucts that suit the needs and as­pi­ra­tions of cus­tomers.

Fur­ther­more, Soli­man noted that the bank has re­cently de­vel­oped its net­work of branches and opened new branches at the level of the repub­lic to reach the var­i­ous cus­tomer seg­ments, in ad­di­tion to ex­pand­ing the avail­abil­ity of ATM ma­chines in the bank to cover all vi­tal ar­eas so that cus­tomers can con­duct their bank­ing trans­ac­tions around the clock.

She added that the bank has in­tro­duced sev­eral mod­u­lar prod­ucts with spe­cific and sim­pli­fied links to meet the needs of cus­tomers, which cover all in­dus­trial, com­mer­cial, and ser­vice ac­tiv­i­ties. These in­clude stan­dard prod­ucts for mod­ern ac­tiv­i­ties with­out bud­gets, prod­ucts for in­dus­trial and com­mer­cial ac­tiv­i­ties with sales start­ing from EGP 1m, and another for the con­tract­ing ac­tiv­ity, stress­ing that the typ­i­cal prod­ucts are eas­ily pro­cessed.

Banque du Caire is aim­ing to achieve sus­tain­able de­vel­op­ment by in­ject­ing its funds in favour of SMEs

Soha Soli­man, vice chair­per­son of the Banque du Caire

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