Cairo – Mubasher: Abu Dhabi Islamic Bank – Egypt (ADIB Egypt) penned the first Shariah-compliant subordinated Tier 2 financing agreement valued at $50 million with the International Finance Corporation (IFC) using the Murabaha system.
The financing deal holds a five-year tenor and is expected to be included in the bank's second tier of the capital base. It will not affect shareholders' rights.
Meanwhile, the agreement aligns with the EGX-listed lender's strategy to increase its capital base and anchor its financial strength, according to a press release.
Mohamed Aly, CEO and Managing Director of ADIB Egypt Egypt, stated: "This is considered the first Shariah-compliant financing for the IFC, not only in Egypt but also worldwide. It required a lot of work and preparation with the International Finance Corporation to complete the agreement."
Aly noted: "We are always looking for added value for us and the society at large, and we seek to expand the Islamic financing base in Egypt."
"It is expected that the financing provided under this agreement will contribute to enhancing the bank's future growth plans and will primarily work on providing financing for small- and medium-sized enterprises (SMEs), thereby supporting local industries in Egypt,” the CEO added.
In the first quarter (Q1) of 2023, ADIB Egypt logged consolidated net profits after tax valued at EGP 1 billion, an annual hike of 126.60% from EGP 444.29 million.
