Arab African International Bank (AAIB) has arranged nearly USD 1.3 billion syndicated loans up till the end of November 2012 to fund some petrochemical and real estate projects in Egypt, an official bank source told Zawya.
AAIB's syndicated loan portfolio in 2012 has reached USD 1.34 billion, up 2% compared to USD 1.31 billion in 2011, the source said.
The source denied any endeavors by the Central Bank of Egypt (CBE) to sell its 49.37% stake in AAIB, adding that the remaining 49.73% stake is held by Kuwait Investment Authority (KIA).
"Lenders' participation in syndicated loans aligns with intentions to curb risks associated with defaults in payments, and to conform to CBE's regulations that one customer's accession to funding should not exceed 20% of the bank's total capital base," said Hesham Ramez, the managing director of Commercial International Bank (CIB).
Syndicated loans have witnessed sluggishness due to the current turmoil in Egypt, accompanied by a general low appetite for corporate expansion; said Ramez, noting that as soon as Egypt recovers from its current state, it will witness an influx of foreign investors.
Currently, AAIB capital stands at around USD 100 million, and has USD 806 million in property and USD 7.8 billion in total assets.
© Zawya 2013
