Emirates NBD will start conducting due diligence on Egyptian state-owned Banque Du Caire as it eyes a stake in the Egyptian lender, a senior banking source told EnterpriseAM. The move was okayed by the Central Bank of Egypt, after the government turned down a separate offer by an anonymous 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 outlet.

The details: Banque Misr is reportedly seeking USD 1-1.2 bn from the direct sale of a 45% stake in BdC, the source told us, implying that the 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.

Background: Sourced had told a local Egyptian outlet 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.

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.

In context: The Egyptian government has floated — and repeatedly delayed — plans to list Banque du Caire 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 — alongside fellow banking sector stalwart Alexbank — slated for stake sales in 2025.

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 FCY reserves and stabilize public finances. The sale also reflects the deepening strategic alliance between Egypt and the UAE, which has already seen major investments like the Modon-backed Ras El Hekma project and Al Dahra’s agricultural expansion.

It wouldn’t be the first time an Emirati investor shows interest in local Egyptian banks: The UAE’s largest lender — FAB — made a run at EFG Hermes back in 2022, while Abu Dhabi’s Chimera acquired financial services firm Beltone Holding. Chimera also took stakes in high-profile non-bank financial services outfits including GB Lease and MNT Investments.

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