CIB general assembly approves issuance of financial instruments worth $1bn 

Hossam Mounir
3 Min Read

The extraordinary general assembly of the Commercial International Bank (CIB) has agreed to authorize the bank’s board of directors to issue financial instruments in the form of bonds or supportive loans, with a maximum limit of $1bn or its equivalent in foreign currencies or Egyptian pounds, and to be issued in one tranche or several tranches through a public or private offering, either locally or through global markets.

The assembly decided to authorize the council to take all procedures and steps related to the issuance during the three years following its decision, in accordance with the provisions of Law No. 159 of 1981 for joint-stock companies, partnerships limited by shares, limited liability companies and its executive regulations, and the provisions of Capital Law No. 95 of 1992 and its executive regulations.

In a statement to the Egyptian Exchange today, Tuesday, the bank stated that the purpose of the issuance is to support the bank’s capital base to finance the bank’s future expansion or investment activities and invest in risk-weighted assets.

According to the bank’s extraordinary general assembly, the board of directors is the one who determines the commissions and expenses for issuing each bond or subsidy loan, whether in Egyptian pounds or in foreign currencies. 

It is also permissible that the issuance conditions contain what is necessary for the inclusion of financial instruments within the general capital of the bank or the supporting capital “the second tranche” according to the need, and it may be negotiable, and it may also be issued on the condition that the bond holder or the lender waive the priority of payment according to what is determined by the Board of Directors. Bonds are issued in the category of one bond, ten bonds, one hundred bonds, and a thousand bonds, for a period of no less than 3 years, while bonds and subsidized loans are issued for a period of no less than 5 years, as determined by the Board of Directors in each issuance, provided that the subsidized bonds or loans are fully consumed at the end of the year.

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