World Bank Group’s private-sector investment arm, the International Finance Corporation (IFC), has invested $100 million in the initial public offering (IPO) of Egypt’s Banque du Caire, acquiring an approximately 7% equity stake as the state-owned lender moves toward greater private ownership.

The investment, which was disclosed as the lender began trading on the Egyptian Exchange (EGX) main market on Monday following a record EGP 36.37 billion ($657 million) initial public offering (IPO), the largest in the history of the country’s capital market, is intended to strengthen the bank’s capacity to expand financing for businesses and households, particularly micro, small and medium-sized enterprises (MSMEs).

IFC backs Egypt’s banking privatization drive

The investment forms part of the Egyptian government’s Asset Monetization Program, which seeks to privatize selected state assets and attract domestic and international investors. Banque du Caire was previously almost wholly owned by Banque Misr, which is fully owned by the Egyptian government.

The public offering was oversubscribed 27 times, with purchase orders exceeding 9.28 billion shares and comprising 6,862,500,000 shares, representing 45% of the bank’s total 15,250,000,000 shares. The IPO gives Banque du Caire a market capitalisation of approximately EGP 80.82 billion ($1.46 billion), while the bank’s issued capital stands at EGP 30.5 billion ($551.01 million).

Under the offering, 45% of Banque du Caire’s share capital will be sold, leaving Banque Misr with an approximately 55% stake. IFC’s participation is expected to strengthen investor confidence in the transaction and broaden the bank’s shareholder base, while supporting Egypt’s efforts to attract private capital and increase private-sector participation in its economy

The European Bank for Reconstruction and Development (EBRD) is also participating in the IPO with an investment of $100 million, bringing the combined commitment from the two multilateral development institutions to $200 million.

Bank targets 1.9 million customers by 2030

Banque du Caire is positioning smaller businesses as a key growth market, with more than three-quarters of its clients located outside Cairo. The bank expects to more than double the number of customers it finances from approximately 899,000 to 1.9 million by 2030, while increasing total lending from about $5 billion to $8.9 billion.

The expansion comes as access to finance remains a constraint for many Egyptian businesses. MSMEs contribute more than one-third of the country’s gross domestic product and employ almost 40% of its workforce, but continue to face challenges securing the funding needed to expand operations and create jobs.

Hussein Abaza, CEO and managing director of Banque du Caire, described the successful IPO as a defining milestone in the bank’s history, citing investor confidence in its business model and strategic direction. He said the bank would focus on disciplined risk management, sound governance and sustainable growth as a publicly listed institution.

IFC builds on existing partnership with Banque du Caire

The investment extends a relationship that includes IFC’s $50 million commitment in 2024 to support Banque du Caire’s MSME lending, with half of the five-year loan allocated to women-owned businesses. The institutions also signed a separate $50 million trade finance guarantee facility.

Beyond financing, IFC has supported the bank in developing an Environmental and Social Management System and strengthening corporate governance. Under the new investment, IFC’s environmental and social risk management requirements are expected to extend across the bank’s full portfolio and subsidiaries.

Ary Naïm, IFC’s division director for North Africa and the Horn of Africa, said the investment reflects the institution’s commitment to strengthening Egypt’s financial sector, expanding access to finance and mobilizing private capital.

The project aligns with the World Bank Group’s Egypt Country Partnership Framework for fiscal years 2023–2027, which prioritizes private-sector participation and the creation of more and better jobs. It also builds on the World Bank Group’s broader efforts to mobilize investment in Egypt, where it has mobilized nearly $6.7 billion in private capital since fiscal year 2022.