EBRD loan to CIB is credit positive -Moody’s

CIB’s USD 100 mn subordinated loan agreement with the European Bank for Reconstruction and Development is credit positive for CIB, ratings agency Moody’s says. The loan qualifies as Tier-2 capital and will increase the bank’s total capital and protect its total regulatory capital ratio against the risk of further weakening of the EGP. “The subordinated loan also will diversify CIB’s funding sources and increase the [USD] funds available to the bank to service its clients.” Moody’s adds that “although the bank did not announce the pricing for the subordinated loan, we do not expect that its cost will materially negatively affect CIB’s funding cost or its high net interest margin of 4.94% as of September 2017.”