Fawry subsidiary Fawry Microfinance will receive a combined 310 million through loan and credit facilities with the Egyptian-American Enterprise Fund (EAEF) and Banque Misr respectively.

The ordinary general assembly of Fawry for e-payments has approved a EGP 160 million loan between Fawry Microfinance and the Egyptian-American Enterprise Fund.

They also approved a financing offer by Banque Misr, a board member and shareholder, which would grant Fawry credit facilities with an authorized limit of EGP 150 million.

EAEF owns a 9.7 percent stake in Fawry while Banque Misr owns 6.3 percent.

According to the statement released, the assembly approved amending its contract with Fawry Dahab for electronic services, adjusting service costs to 17.25 percent of net revenue, instead of 15 percent.

The increase in retained earnings is financed with an amount of EGP 100m distributed over 200 million shares, at the rate of 0.28 free shares for each original share worth EGP 0.5. The figure represents the nominal value of the share, according to the results of the financial statements for the year ending on 31 December 2019.

An increase in the company’s authorized capital, from EGP 500 million to EGP 1 billion, and an increase of the issued company’s capital from EGP 353.652 million to EGP 453.652 million in nominal value for the benefit of old shareholders, was agreed upon.

This will be in proportion to their contribution to the issued capital of the company.

The company’s increased issued capital, EGP 453.652 million in nominal value, will be divided by 907.304 million shares, with each having a value of EGP 0.5, to EGP 853.652 million.

This will be allocated to old shareholders, each of whom will benefit according to their contribution to the capital, and in accordance with the applicable rules.

It was also approved to trade the subscription right separately from the original share, pursuant to the rules for listing and delisting securities on the Egyptian Exchange (EGX) and its executive procedures.

Fawry previously mentioned its hope to expand its microfinance portfolio to EGP 500 million by the end of 2021, up from EGP 204 million in the first nine months of 2020, back in December.