Cairo, Egypt, April 5, 2011—
IFC Capitalization Fund signed agreements to support the capitalization and expansion plans of Ahli United Bank, an important bank active across the Middle East and North Africa region, by investing $125 million in equity and $165 million in subordinated debt.
IFC Capitalization Fund’s investments in Ahli United Bank will provide long-term capital resources to the bank as it expands operations in Egypt, Iraq and other countries. Through these investments—IFC’s Capitalization Fund’s first in the Middle East and North Africa region—IFC and the IFC Capitalization Fund aim to support cross-border investment and facilitate greater regional economic and financial integration.
Adel El-Labban, Ahli United Bank’s Group CEO and Managing Director, said: "AUB is very pleased to expand and diversify its banking partnership with IFC and the IFC Capitalization Funds in a landmark capital raising transaction which will have a major impact on its regional growth and business development. IFC has proved to be a reliable strategic partner especially in these difficult times."
IFC established a relationship with Ahli United Bank in 2006 when it provided the bank with a $200 million convertible subordinated loan. IFC subsequently supported Ahli United Bank Group entities in Oman and Egypt with equity investments of $35 million and $40 million respectively.
“The Capitalization Fund’s investments will support Ahli United Bank during a challenging time for markets in the Middle East and North Africa region,” said Marcos Brujis, who heads the IFC Capitalization Fund. “We look forward to facilitating the bank’s expansion and growth throughout the region.”
“The expansion of Ahli United Bank will support trade, financial flows, and provide access to finance for underserved segments of society in the region’s frontier and emerging countries,” said Rashad Kaldany, IFC Vice President for Asia, Eastern Europe, Middle East and North Africa. “IFC and IFC Capitalization Fund’s support for a regional champion and longstanding partner in development like Ahli demonstrates our confidence in the fundamentals of economies in the Middle East and North Africa region. “
The IFC Capitalization Fund is a global equity and subordinated debt fund founded by the International Finance Corporation, a member of the World Bank Group, and the Japan Bank for International Cooperation. It aims to support banks considered vital to the financial system of emerging market countries.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
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About IFC Asset Management Company
IFC Asset Management Company LLC, a wholly-owned subsidiary of IFC, invests third-party capital, enabling outside investors to benefit from IFC’s expertise in achieving strong equity returns as well as positive development impact in the countries in which it invests. It manages the $3 billion IFC Capitalization Fund and the $1 billion IFC African, Latin American and Caribbean Fund.
About Japan Bank for International Cooperation
The Japan Bank for International Cooperation (JBIC) is the international wing of the Japan Finance Corporation, Japan’s policy-based financing institution established on October 1, 2008. It succeeded International Financial Operations of the former JBIC and will continue to use the name JBIC to maintain international trust and confidence it has gained. JBIC provides policy-based finance with a mission to contribute to the sound development of the Japanese and international economy, including finance responding to disruptions in financial order in the international economy. For more information, visit
www.jbic.go.jp/en/
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