The Sovereign Fund of Egypt (TFSE) to discuss the possibility of purchasing a minority stake in the United Bank and the Banque du Caire
The Managing Director for the Southern and Eastern Mediterranean (SEMED) region at the European Bank for Reconstruction and Development (EBRD), Heike Harmgart said that the bank is seeking to acquire shares in a number of Egyptian companies within the government Initial Public Offering (IPO) program according to local media reports.
She added that discussions are currently underway with The Sovereign Fund of Egypt (TFSE) to discuss the possibility of purchasing a minority stake in the United Bank and the Banque du Caire, but EBRD is awaiting the announcement of the percentages or shares that will be offered in the two banks.
She stressed that the EBRD supports the government's privatization program in general and realizes its importance in achieving growth rates of the Egyptian economy and its role in increasing foreign cash flows and increasing revenues.
According to a recent report from the cabinet's Information and Decision Support Center (IDSC) published earlier this month, Egypt is preparing for a significant increase in revenue in the upcoming fiscal year 2023/2024. The country expects to generate up to EGP 70 billion, which is equivalent to 0.6% of the gross domestic product (GDP), through its IPO program.
The government is actively working on the implementation of a well-defined IPO program specifically designed for government offerings. The plan is to make 35 companies go public or sell stakes to strategic investors by the first half of 2024.
Egypt's TFSE already reported that it received $5 billion from the sale of state shares in 13 companies between March 2022 and July 2023.
