{"id":554879,"date":"2021-11-18T13:42:19","date_gmt":"2021-11-18T13:42:19","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/18\/tonight-efg-hermes-is-officially-a-universal-bank-charles-and-camilla-meet-el-sisi-it-hasnt-been-a-great-day-for-em-equities\/"},"modified":"2021-11-18T13:42:19","modified_gmt":"2021-11-18T13:42:19","slug":"tonight-efg-hermes-is-officially-a-universal-bank-charles-and-camilla-meet-el-sisi-it-hasnt-been-a-great-day-for-em-equities","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/11\/18\/tonight-efg-hermes-is-officially-a-universal-bank-charles-and-camilla-meet-el-sisi-it-hasnt-been-a-great-day-for-em-equities\/","title":{"rendered":"TONIGHT: EFG Hermes is officially a universal bank + Charles and Camilla meet El Sisi + it hasn\u2019t been a great day for EM equities"},"content":{"rendered":"

Good afternoon, wonderful people<\/strong> \u2014 and mabrouk for making it through a bear of a week.<\/p>\n

<\/a> THE BIG STORY TODAY- <\/strong>EFG Hermes is now officially a universal bank:<\/strong> Our friends at EFG Hermes informed shareholders today that the firm has finalized its acquisition of a 51% stake in the Arab Investment Bank (aiBank), \u201cmarking a strategic entry into the fast-growing and solid Egyptian commercial banking sector\u201d and completing its transformation into a universal bank in Egypt, EFG said in a statement (pdf)<\/a> today.<\/sup><\/sup> EFG Hermes Holding will now assume control of aiBank in partnership with the Sovereign Fund of Egypt\u2019s TSFE Financial Services and Fintech Subfund, which is acquiring a 25% stake. The state-owned National Investment Bank will retain a 24% stake of aiBank post-transaction, having previously held 91.4%.<\/p>\n

What do we mean when we say universal bank? <\/strong>With the completion of the transaction, EFG Hermes\u2019 Egyptian operations now include an investment bank, a commercial bank and a fast-growing non-bank financial services platform, \u201censuring that we can provide a holistic set of financial products and services to both retail and corporate clients alike in our home market,\u201d Group CEO Karim Awad said.<\/p>\n

The EGP 3.8 bn acquisition is a landmark for the Sisi administration<\/strong> as it looks to underscore its seriousness about partnering with the private sector to unlock growth. Critical here: The support of the Sovereign Fund of Egypt, which has built a solid track record as a trusted partner for private business, and of the Central Bank of Egypt, which gave the transaction the green light. We have background on the transaction here<\/a> and here<\/a>.<\/p>\n

EFG Hermes now has an addressable market of 1 bn consumers <\/strong>across Egypt and 12 other fast-growing frontier emerging market economies in which it is the leading FEM investment banking platform, spanning from Nigeria to Kenya, from Pakistan to Vietnam as well as offices in London and New York.<\/p>\n

Awad and the team at EFG have been working hard on this transformation for years now. <\/strong>Read more in this two-part interview we did with him earlier this year (here<\/a> and here<\/a>) or listen to the background in our chat on Making It, our podcast on how to build a great business in Egypt (listen, runtime: 34:07<\/a> and tap the button in the player at the bottom of the page).<\/p>\n

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<\/a> ALSO- Speaking of the central bank: Local businesses and manufacturers could be in line <\/strong>for more financing from<\/strong> banks.<\/strong> The CBE has directed banks to ramp up opex loans to domestic businesses, according to state-run MENA<\/a>. The CBE wants banks to help local industry cope with rising global prices of raw materials and maintain productivity levels.<\/p>\n

Idle factories could also get a shot in the arm<\/strong>, with CBE Governor Tarek Amer instructing banks to address issues facing local industry, including helping them with large fines on overdue taxes and natgas bills.<\/p>\n

There\u2019s more good news from the CBE<\/strong>, as remittances in August grew 11.6% y-o-y to USD 2.7 bn, according to a statement (pdf)<\/a> out today.<\/p>\n

HAPPENING NOW-<\/strong><\/p>\n

The<\/strong><\/sup> Duke and Duchess of Cornwall have landed:<\/strong> President Abdel Fattah El Sisi and Prince Charles discussed cooperation on fighting terrorism and extremism, as well as secondary education, health, and environmental initiatives during a meeting that just wrapped, according to an Ittihadiya statement<\/a>. Charles landed in Cairo with the Duchess of Cornwall, who also met with First Lady Entissar El Sisi Ittihadiya said<\/a> earlier in the day. Charles and Camilla are in town today and tomorrow for their first visit to Egypt in well over a decade. The royals will also head to Alexandria tomorrow. Their visit is getting plenty of coverage in the foreign press: The Telegraph<\/a> | Evening Standard<\/a> | the National<\/a>.<\/p>\n

** CATCH UP QUICK<\/strong> on the top stories from today\u2019s EnterpriseAM<\/strong>:<\/p>\n