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(Adds details of fundraising plans)
CAIRO, Feb 11 (Reuters) - Commercial International Bank (CIB) will raise up to 8 billion Egyptian pounds ($1 billion) to fund expansion after its board backed the plan, Egypt's largest listed company said on Thursday.
The funds will be raised through local or international bonds issued between 2016 and 2018, depending on the needs of the bank, a source at the bank told Reuters.
CIB, which last year bought Citigroup's retail business in Egypt, did not give specific details on its growth plan.
CIB in a separate statement proposed a dividend of 0.75 pounds per share for 2015, down from 1.20 pounds, to boost its capital adequacy ratio.
On Wednesday CIB reported a 26 percent jump in 2015 net profit to a record 4.7 billion Egyptian pounds. Net profit for the fourth quarter rose 11 percent to 1.15 billion pounds.
Naeem Brokerage upgraded its recommendation to "Buy" from "Accumulate" on the earnings.
However, CIB shares were down 5.2 percent at 1218 (1018 GMT) with some analysts expressing concern about rising provisions for non-performing loans in Q4.
Egypt, home to roughly 90 million people, has relatively few banks and offers opportunities for expansion.
The country has struggled to revive growth, however, since a 2011 uprising scared off foreign investors and tourists.
($1 = 7.8300 Egyptian pounds)
(Reporting by Ehab Farouk and Lin Noueihed; editing by Jason Neely and Keith Weir) ((lin.noueihed@thomsonreuters.com; +202 2 394 8039; Reuters Messaging: lin.noueihed.thomsonreuters.com@reuters.net))
CAIRO, Feb 11 (Reuters) - Commercial International Bank (CIB) will raise up to 8 billion Egyptian pounds ($1 billion) to fund expansion after its board backed the plan, Egypt's largest listed company said on Thursday.
The funds will be raised through local or international bonds issued between 2016 and 2018, depending on the needs of the bank, a source at the bank told Reuters.
CIB, which last year bought Citigroup's retail business in Egypt, did not give specific details on its growth plan.
CIB in a separate statement proposed a dividend of 0.75 pounds per share for 2015, down from 1.20 pounds, to boost its capital adequacy ratio.
On Wednesday CIB reported a 26 percent jump in 2015 net profit to a record 4.7 billion Egyptian pounds. Net profit for the fourth quarter rose 11 percent to 1.15 billion pounds.
Naeem Brokerage upgraded its recommendation to "Buy" from "Accumulate" on the earnings.
However, CIB shares were down 5.2 percent at 1218 (1018 GMT) with some analysts expressing concern about rising provisions for non-performing loans in Q4.
Egypt, home to roughly 90 million people, has relatively few banks and offers opportunities for expansion.
The country has struggled to revive growth, however, since a 2011 uprising scared off foreign investors and tourists.
($1 = 7.8300 Egyptian pounds)
(Reporting by Ehab Farouk and Lin Noueihed; editing by Jason Neely and Keith Weir) ((lin.noueihed@thomsonreuters.com; +202 2 394 8039; Reuters Messaging: lin.noueihed.thomsonreuters.com@reuters.net))
