Commercial International Bank Egypt (CIB) (COMI) has acquired a 15% stake in El Sewedy Engineering Industries (SEI), a subsidiary of Zaki El Sewedy Group, CIB announced in a press release on September 8th.

The acquisition has been executed through a capital increase of SEI, Egypt’s largest private sector bank said.

SEI will use proceeds from the transaction to finance future expansions in local and regional markets, CIB added.

Through the capital increase, SEI targets raising its stake in Arab Industrial and International Trading Co to 68.14% and in Elsewedy Lighting to 66.67%.

Meanwhile, CIB aims to boost the return on equity (RoE) in the bank through investing in the capital of SEI.

The transaction comes in line with CIB’s notable role in providing direct investment services in companies as one of the financing solutions to meet the needs of customers.

Ironwood Investments acted as the financial adviser on the transaction to SEI, while Talaat Law Office served as legal counsel.

Furthermore, Ernst & Young Egypt and Intercap Capital were the financial advisers to CIB, and Matouk Bassiouny and Hennawy acted as the bank’s legal counsel.

CIB is Egypt's leading private sector bank, operating in corporate banking, investment banking, retail banking, treasury and capital market services, and others.

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