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Credit Agricole Egypt is granted the approval to fully acquire the Egyptian Housing Finance Company

The acquisition increases the bank's share to 99.98%
Credit Agricole Egypt has received the approval of the Stock Exchange Market and executed the transaction to purchase the remaining shares of the Egyptian Housing Finance Company ( EHFC ). Accordingly, EHFC has become entirely owned by Crédit Agricole Egypt with a total of 99.98% of the shares.

EHFC , established in 2004, is one of the largest mortgage companies in terms of operations in the Egyptian market. The company provides funds for home purchasing, home construction, home renovation and refinancing.

"We are very pleased with the acquisition of EHFC . The addition of this mortgage finance arm is consistent with our expansion plan through diversifying and strengthening our lines of business", said Henri Guillemin, Managing Director of Crédit Agricole Egypt. " EHFC has a strong record in providing mortgage finance in the country. We believe that this investment will enhance our revenues as well as our shareholders' value. Mr. Guillemin further added that the company will be operating as an independent subsidiary of the bank and the existing management team and employees will remain unchanged.

On the other hand, Mrs. Hala Bassiouni, Managing Director of EHFC mentioned that EHFC Board of Directors has approved to double the company's capital to reach 100 M, allowing the company to extend its services to larger number of clients. "Although mortgage finance is a newly introduced concept, Egypt is an emerging market with high potential for growth. While the local real estate sector has encountered periods of stagnation, it is foreseen to prosper significantly. Crédit Agricole Group's vast experience, coupled with our local market expertise, will allow EHFC to effectively fulfil the needs of the Egyptian community", added Mrs. Bassiouni.

As a result of this acquisition, Crédit Agricole Egypt banked out the shares of IFC (20%), OPEC (20%) and HDFC (10%) with a total deal reaching EGP 70 million. EHFC commenced operations in 2004 with a paid in capital of EGP 50 million and authorized capital of EGP 100 million. The total accumulative fund provided by EHFC since 2004 reached EGP 390 million with an average loan value of EGP 450,000. EHFC 's financial portfolio is comprised of 30% for high income, 60% for medium income and 10% for low income as part of the national housing project.

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About CAE:
CAE was established when Crédit Agricole SA, a leading global financial institution operating in more than 70 countries, and the Mansour & Maghraby Investment & Development Company (MMID) acquired the Egyptian American Bank and merged the network with Calyon Bank Egypt in September 2006.

Today, CAE's committed team of experts offers a wide range of products and services designed to meet the demands of leading national and regional Corporations, SMEs, and retail clients, as well as high net worth customers. In addition to its network of branches conveniently located throughout the country, Crédit Agricole Egypt offers online banking services for easy access and convenient transactions www.ca-egypt.com in addition to its call center (19191) available 24 hours, 7 days a week. www.ca-egypt.com

For more information please contact:
Rowaidah Bibers
TRACCS Egypt
Tel: (+202) 33046860
Fax: (+202) 33031219
Email: rowaidah.bibers@traccs.net

© Press Release 2009