Egypt - Banque Misr, one of the largest banks in Egypt, plans to establish a green investment fund in the first quarter of 2024, sources told Daily News Egypt.

The fund will invest in companies that respect environmental, social, and governance (ESG) standards, especially those listed on the Egyptian Exchange (EGX).

The sources, who requested anonymity, said that the bank is preparing to apply for approval from the Central Bank of Egypt (CBE) for the fund, which will follow the sustainability index issued by Standard & Poor’s. The size of the fund has not yet been determined.

Green investment funds are mutual funds that finance companies that adhere to environmental and societal standards, which are increasingly demanded by investors and consumers around the world.

The sources also said that the bank is considering listing its recently launched real estate fund on the EGX after its size reached about EGP 360m. The bank aims to establish a new real estate fund that will attract individuals in 2024, with an initial capital of EGP 500m.

The bank’s real estate fund, named: “Egypt Real Estate Investment Fund 1,” was launched in December 2022, in partnership with Banque du Caire, Misr Insurance Holding Company, and Allianz Insurance. The fund aims to invest in commercial properties with periodic returns and to provide mechanisms for investors who want to invest in real estate and achieve good returns while distributing risks over several properties owned by the fund.

The General Assembly of Banque Misr approved increasing the bank’s paid-up capital to EGP 50bn, compared to EGP 15bn at the end of 2021, and its authorized capital to EGP 120bn, compared to EGP 30bn. The bank also reported growth in its total financial position, net direct loans to customers, and loans to individuals and institutions in 2022.

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