• The financing provided by the International Finance Corporation (IFC) is the first Shariah-compliant subordinated Tier 2 financing agreement worth $50 million for a period of five years, and is set to be included in the second tranche of the bank’s capital base.
  • The financing agreement drives Abu Dhabi Islamic Bank Egypt’s expansion plan towards adopting more initiatives aimed at supporting sustainable development.
  • Mohamed Aly, CEO and Managing Director of Abu Dhabi Islamic Bank Egypt: "The financing enhances the bank's future growth plans and contributes significantly to providing financing for small and medium-sized enterprises to support the local industries in Egypt."

Cairo 17 July 2023 - Abu Dhabi Islamic Bank Egypt has announced the signing of the first Shariah-compliant subordinated Tier 2 financing agreement worth $50 million with the International Finance Corporation (IFC) using the Murabaha system. The financing agreement has a duration of five years and is expected to be included in the bank's second tier of the capital base, with no impact on shareholder rights. This step is part of Abu Dhabi Islamic Bank Egypt's ongoing strategy to increase its capital base and financial strength, and reflects the global financial institutions' confidence in the bank's performance.

Mohamed Aly, CEO and Managing Director of Abu Dhabi Islamic Bank Egypt, stated: "We are pleased to sign with the International Finance Corporation the first Shariah-compliant Murabaha financing agreement. This is considered the first Shariah-compliant financing for the International Finance Corporation, not only in Egypt but also worldwide. It required a lot of work and preparation with the International Finance Corporation to complete the agreement." He added: "We are always looking for added value for us and the society at large, and we seek to expand the Islamic financing base in Egypt."

"The International Finance Corporation is a member of the World Bank Group and one of the largest and most important financing entities concerned with promoting sustainable private sector investment. It is expected that the financing provided under this agreement will contribute to enhancing the bank's future growth plans and will primarily work on providing financing for small- and medium-sized enterprises, thereby supporting local industries in Egypt”, added Aly.

“The financing agreement is expected to help drive the bank's expansion plan towards adopting more initiatives aimed at supporting sustainable development, by providing a greater number of innovative banking solutions that are Shariah-compliant”, Aly pointed out.

“The International Finance Corporation’s first Shariah-compliant subordinated finance agreement with Abu Dhabi Islamic Bank Egypt reflects our confidence in the bank and its commitment to building a sustainable banking strategy,” said Cheick-Oumar Sylla, Director for North Africa and Horn of Africa at the International Finance Corporation. “This agreement is also a testament to the International Finance Corporation’s support for smaller businesses and our focus on driving sustainable development in the region.”

On the other hand, Abu Dhabi Islamic Bank Egypt's receipt of this financing reflects its full adoption of the sustainability concept within its business strategy. Over the past years, the bank's vision for sustainable development has been embodied in its success in adopting an integrated set of initiatives and practices that aim to support development at all economic, social, and environmental levels, in line with Egypt's Vision 2030.

It is worth mentioning that Abu Dhabi Islamic Bank Egypt offers a variety of different financing solutions that meet the diverse needs of individual and corporate customers by providing a range of Shariah-compliant financing options, such as Murabaha, Mudaraba, and Ijara.

-Ends-

About ADIB-Egypt

ADIB-Egypt is an award-winning bank that launched its operations in Egypt after the acquisition of National Bank for Development, through an Emirati consortium between Abu Dhabi Islamic Bank and Emirates International Investment Company in 2007.

As part of ADIB Egypt’s strategy as a universal bank focused on providing a wide range of modern and Shariah-compliant financial solutions to its corporate and individual clients, advanced infrastructure has been developed, in addition to renovating a vast network of 70 branches and over 100 ATMs deployed across the republic's governorates through a team of qualified personnel.

ADIB-Egypt is committed to providing innovative technology that includes all digital products, and integrating the latest smart methods in Fintech to provide customers with further convenience, as we continue providing the latest e-payment technologies, and keep pace with the latest state-of-the-art smart technologies, seeking sustainable growth linked to service level, employee efficiency and market-share growth.

Aiming at integrating its services, ADIB-Egypt established its investment banking arm, ADI Capital, and a leasing company, ADIFinance, and an asset management arm. In 2020, the bank established two more companies: ADI Microfinance and ADI Consumer Finance, in response to growing customer needs, and to provide appropriate and immediate services using digital financial technology.

Asmaa Ghonem, Media Relations Manager
Email: a.ghonem@vantage.com.eg