IFC Invests USD 100m in Banque du Caire IPO to Expand Business Lending in Egypt

The European Bank for Reconstruction and Development (EBRD) is participating with another $100 million, bringing the two development banks’ combined investment in the offering to $200 million.

The International Finance Corporation (IFC), the World Bank Group's private sector arm, has announced a $100 million investment in Egypt's Banque du Caire through its initial public offering, securing an approximately 7% equity stake. The investment is intended to strengthen the bank's capacity to provide financing for businesses and households across the country. The European Bank for Reconstruction and Development (EBRD) is participating with another $100 million, bringing the two development banks' combined investment in the offering to $200 million.

Micro, small and medium enterprises contribute more than one-third of Egypt's gross domestic product and employ almost 40% of its workforce. Limited access to finance continues to constrain these businesses, making it harder for them to invest, expand operations and create jobs. Banque du Caire has made smaller enterprises a priority, with more than three-quarters of its clients located outside Cairo.

By 2030, Banque du Caire expects to more than double the number of customers it finances, from about 899,000 to 1.9 million. Total lending is projected to increase from about $5 billion to $8.9 billion over the same period, supported by IFC's investment. The planned expansion would bring financing to more businesses and households, supporting the private sector's contribution to Egypt's economic growth.

Public Listing Opens a New Chapter for Banque du Caire

Hussein Abaza, Banque du Caire's CEO and managing director, described the completed IPO as a milestone reflecting investor confidence in the bank's strategy and prospects. He pointed to the strength of the bank's business and its ability to withstand challenges as reasons for investors' confidence in its future. Abaza welcomed IFC as a long-term investor and said disciplined risk management, sound governance and sustainable growth would remain central to creating value for shareholders, customers and the wider economy.

Support for Small Businesses and Women Entrepreneurs

In 2024, IFC committed $50 million through a five-year loan to support Banque du Caire's lending to micro, small and medium enterprises. Half of that funding was dedicated to women-owned businesses, giving them a specific allocation within the financing provided for smaller enterprises. A separate $50 million trade finance guarantee line was signed as part of the partnership, adding another form of support for the bank's operations.

IFC has helped Banque du Caire develop an Environmental and Social Management System and strengthen its corporate governance, extending the partnership beyond financial investment. Ary Naïm, IFC's Division Director for North Africa and the Horn of Africa, said the latest investment reflected IFC's commitment to Egypt's financial sector. He described access to finance as a way to help businesses grow, invest and create more and better jobs, supported by private capital aligned with Egypt's development priorities.

Greater Private Investment in Egypt

The investment supports the Egyptian government's Asset Monetization Program, part of its effort to increase private sector participation and attract private investment. Banque du Caire's IPO could broaden the bank's investor base and draw more capital from investors in Egypt and overseas. IFC's participation complements its wider work with the government to open more opportunities for private businesses across the economy.

The project aligns with the World Bank Group's Country Partnership Framework for Egypt for fiscal years 2023–2027, which prioritises more and better private sector jobs and greater private participation. It builds on IFC's 50-year partnership with Egypt and the World Bank Group's work to improve conditions for private investment. Since fiscal year 2022, the World Bank Group has mobilised nearly $6.7 billion in private capital for the country through reforms, financing, guarantees and partnerships.