CAIRO: The Egyptian Export Promotion Bank will launch a new E£100 million cash mutual fund with accumulative daily return to invest in low risk securities, such as treasury bonds and bills and the Central Bank of Egypt’s Sukuk.
The fund, which will be launched by the end of this month, will also invest in companies’ debt securities after the approval of the Capital Market Authority. Management of the fund will be assigned to ABN Amro Delta asset and fund managers in Egypt.
Hisham Hassan, chairman of the Export Promotion Bank, said to reporters on Thursday that the 25-year fund may be larger if subscriptions exceeded the offering value.
Documents of the new fund will be offered at a nominal value of E£100 without a subscription commission.
Trading of the documents will be without fees, in addition to the accumulative daily return to policyholders that will exceed the average rate on bank deposits.
“The fund will adopt conservative low-risk investment policies to protect investors’ money and will diversify its portfolio to include various sectors, he added.
A general meeting of the Export Promotion Bank had earlier approved a proposal to increase the bank’s paid-in capital by 33 per cent to £800 million through a capital increase issue of £200 million at £10 per share.
