CIB Announces Increase in Authorized capital to EGP100 Bn, Pending CBE’s Approval
First Bank
CIB-Egypt announced in a statement to the Egyptian Stock Exchange today, the approval of the bank's extraordinary general assembly to amend Article 6 of the bank's articles of association, which stipulates an increase in its Authorized capital from EGP 50 bn to EGP 100 bn.
After the amendment, Article 6 states that the bank's Authorized capital will be distributed among EGP30.195 bn shares with a nominal value of 10 pounds per share, all of which are ordinary nominal and cash shares.
The bank stated in its announcement that the extraordinary general assembly approved the amendment of 31 articles of the bank's articles of association, subject to the approval of the Central Bank of Egypt.
In addition, the bank's general assembly authorized its board of directors to issue financial instruments, such as nominal bonds or supporting loans, up to $1 bn or its equivalent in foreign currencies or Egyptian pounds. These instruments may be issued in a single tranche or multiple tranches through public or private offerings, either domestically or on the global markets.
The statement emphasized that the purpose of this issuance is to support the bank's capital base for financing future expansionary and investment activities, including investments in high-risk assets. The nominal value for each instrument in each issuance, both within Egypt and abroad, will be determined by the board of directors.
The statement specified that all bonds will be issued in denominations of one bond, 10 bonds, 100 bonds, and 1000 bonds. The bonds will have a minimum maturity period of not less than 3 years, while supporting loans will have a minimum maturity period of not less than
5 years, as determined by the board of directors in each issuance.
The bonds and supporting loans will be fully utilized by the end of the issuance period.
Furthermore, the statement clarified that the bonds and supporting loans will be offered in the local and international markets through one or more public or private offerings. The minimum subscription amount will be determined by the bank's board of directors for each issuance.
