Egypt’s Export Development Bank’s (EBE) Board of Directors said it approved increasing its issued and paid-up capital from 2.7 to 3.3 billion pounds.
EBE’s Board of Directors Chairman, Mervat Sultan, said “the capital was increased from retained earnings.
The bank said it took the decision in line with the new requirements of the Central Bank, and in accordance with Law 194 of 2020.
The bank will issue bonus shares of 54.6 million pounds, at a nominal value per share of 10 pounds. The shares will be funded by the profits shown in the financial statements for the year ending in June 2020.
The financial year of the Egyptian Bank ends on June 30 of each year.
Sultan said the bank had achieved good growth during the previous years. The bank was working to increase this growth according to 2017-2022 strategy.
Sultan said the Board of Directors is working on reviewing the strategy to update it and complete its main axes. For instance, the bank aims to keep pace with international standards in technical service.
Sultan said the volume of loans and facilities portfolio on June 30, 2020 amounted to 31.5 billion pounds. Exports which are the core of the business, represented at least 70% of the portfolio.
She said there are other businesses such as retail banking, small and medium businesses, and so forth use it to feed the big corporate sector.
Sultan revealed that the bank seeks to grow its portfolio during 2021, by 30% to 35%. The bank achieved nearly 37 billion pounds net of this portfolio in the first half of the fiscal year 2020-2021.
EBE cooperated with the Central Bank and the Ministries of Finance and Industry, and in view of the important role played by the EBE. There was an initiative to disburse exporters’ dues with the Ministry of Finance.
In three tranches in November and December, a large portion of these receivables were disbursed to the exporters, who applied and it was approved, and the bank’s net share was about four billion Egyptian pounds for this initiative.