One step closer to the Banque du Caire stake sale: Banque du Caire owner Banque Misr is seeking USD 1-1.2 bn from the direct sale of a 45% stake in BdC, a senior banking source told EnterpriseAM, implying that BdC boasts a valuation of c. USD 3 bn, according to our calculations. A separate stake could be debuted on the EGX while the parent company — Banque Misr — retains a non-controlling stake, the source told us, adding that BdC is also open to competing bids from strategic investors.

One suitor is in line: Emirates NBD is currently conducting its due diligence of the state-owned lender as the Dubai-listed lender looks to acquire an undisclosed stake in the state-owned bank. This comes after the government turned down a separate offer by an unnamed Kuwait-based bidder, Asharq Business reports, citing two unnamed sources it says have knowledge of the matter. The transaction is expected to reach a close in a matter of six weeks, according to the news outlet.

BACKGROUND- Plans to sell part of Banque du Caire have been floated — and repeatedly delayed — since 2018. The government has continued to position BdC as a prime privatization target, with Prime Minister Moustafa Madbouly highlighting it in December as one of ten state-owned companies — including fellow banking sector stalwart Alexbank — slated for stake sales in 2025.

Last we heard: Sourced had told Al Shorouk last month that Emirati and Kuwaiti financial institutions have begun due diligence to acquire at least 60% of Banque du Caire. The state was said to be looking to exit the lender in 2Q 2025, with CI Capital reportedly appointed as the financial advisor for the sale.

Our take: Don’t hold your breath for an IPO. BdC is not just one of the nation’s largest lenders, it’s among the crown jewels of the financial system, and the central bank together with management has long invested in preparing it for sale. With the 2025 IPO climate shrouded in uncertainty, the odds of the state getting the best possible valuation (to say nothing of finding a good “corporate parent” for the bank) would be maximized by selling Banque du Caire to a qualified strategic — ideally an Emirati one.

The caveat: Unresolved issues over BdC’s Sinai-based assets — which under Egyptian law cannot be owned by foreign investors — are still being worked through, with options including selling those assets to a local investor or transferring them to a state-owned bank currently under review, Asharq Business reported.

Part of a wider privatization push: The transaction is unfolding against the backdrop of a broader government push to accelerate state asset sales and attract Gulf capital as part of efforts to shore up FX reserves and stabilize public finances. The potential sale would also reflect the deepening strategic alliance between Egypt and the UAE, which has already seen major investments like the Ras El Hekma project and Al Dahra’s agricultural expansion.

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