Egypt’s EFG Hermes has officially become a universal bank after finalising its acquisition of a 51 percent stake in the Arab Investment Bank (aiBank) in partnership with the Sovereign Fund of Egypt (TSFE).
The deal, which marks “a strategic entry into the fast-growing and solid Egyptian commercial banking sector,” will see EFG Hermes Holding assume control of aiBANK, with TSFE Financial Services and Fintech, a subfund fully-owned by TSFE acquiring a 25 percent stake, EFG said in a statement.
The state-owned National Investment Bank (NIB) will retain a 24 percent stake of aiBank post-transaction, having previously held 91.4 percent.
With the completion of the landmark transaction, EFG Hermes’ Egyptian operations now include an investment bank, a commercial bank, and a fast-growing non-bank financial services platform.
“The closing of this landmark transaction with our esteemed partner TSFE will drive the transformation of our Egyptian operations into a universal bank with an investment bank, a commercial bank and a fast-growing Non-Bank Financial Institutions (NBFI) platform, ensuring that we can provide a holistic set of financial products and services to both retail and corporate clients alike in our home market.” Group chief executive Karim Awad said.
