28/4/2020 12:00 AM
CAIRO AND NAIROBI - April 26th, 2020
Based on both banks' Board of Directors' approval, and after obtaining all necessary approvals including the Central Bank of Egypt and the Central Bank of Kenya, CIB would like to announce that the bank has acquired 51% of what is to be renamed as Mayfair CIB Bank Limited in Kenya in the form of a capital increase, for a total transaction value of USD 35.35 million.
The move comes in line with CIB's mandate to explore and assess opportunities in Africa, building a bridge for Egyptian customers to benefit from regional integration efforts across the continent and benefiting from the prospects available from being Common Market for Eastern and Southern Africa (COMESA) members and the recent African Continental Free Trade Agreement (ACFTA).
Commenting on the transaction, Hisham Ezz Al-Arab, CIB's Chairman and Managing Director, said, "Our African expansion strategy acknowledges the opportunities that our continent holds. Kenya, marking our first cross-border operation, reflects our commitment to promote intra-African integration and business growth and this partnership is viewed as a window to mutually exchange market know-how and learnings. We look forward to the prospects that this partnership will unravel."
"Our partnership with CIB is founded on the synergies that we see in both our entities coming together. CIB will be bringing its technical expertise, experienced know-how, and vast correspondent banking network, whilst Mayfair Bank, via its existing shareholders, will avail the local knowledge and navigation, which are vital elements to success.", Anjay Patel, Chairman of Mayfair CIB Bank Limited said.
Hussein Abaza, CIB's CEO and Board Member further commented that, "We look forward to realizing value to our stakeholders through Mayfair CIB Bank Limited. Our aim is to widen the trade corridor between Egypt, Kenya and its neighboring countries on the one hand and facilitate the presence of Egyptian and international corporations with interest in Kenya on the other, whilst contributing to the growth of Kenyan corporates and SMEs."