The Banking Executive Magazine - July 2023 Issue

ADIB Egypt ADIB EGYPT, IFC SIGN FIRST SHARIAH-COMPLIANT SUBORDINATED TIER 2 FINANCING AGREEMENT WORTH $50MLN Abu Dhabi Islamic Bank (ADIB) Egypt has announced the signing of the first Shariah-compliant subordi- nated Tier 2 financing agreement worth $50m with the International Finance Corporation (IFC) using the Murabaha system. The financing agreement will last for five years and is expected to be in- cluded in the bank’s Tier 2 of the capital base, with no impact on shareholder rights. This step is part of Abu Dhabi Islamic Bank Egypt’s on- going strategy to increase its capital base and financial strength, and re- flects the global financial institutions’ confidence in the bank’s perform- ance. Mohamed Aly, CEO and Managing Director of Abu Dhabi Islamic Bank Egypt, stated: “We are pleased to sign with the International Finance Cor- poration the first Shariah-compliant Murabaha financing agreement. This is considered the first Shariah-com- pliant financing for the International Finance Corporation, not only in Egypt but also worldwide. It required a lot of work and preparation with the International Finance Corpora- tion to complete the agreement.” He added: “We are always looking for added value for us and the society at large, and we seek to expand the Is- lamic financing base in Egypt.” “The International Finance Corpora- tion is a member of the World Bank Group and one of the largest and most important financing entities concerned with promoting sustain- able private sector investment. It is expected that the financing provided under this agreement will contribute to enhancing the bank’s future growth plans and will primarily work on providing financing for small- and medium-sized enterprises, thereby supporting local industries in Egypt,” added Aly. “The financing agreement is ex- pected to help drive the bank’s ex- pansion plan towards adopting more initiatives aimed at supporting sus- tainable development, by providing a greater number of innovative bank- ing solutions that are Shariah-com- pliant,” he added. Cheick-Oumar Sylla, Director for North Africa and Horn of Africa at the International Finance Corpora- tion, commented: “The finance agreement with Abu Dhabi Islamic Bank Egypt reflects our confidence in the bank and its commitment to building a sustainable banking strat- egy. This agreement is also a testa- ment to the International Finance Corporation’s support for smaller businesses and our focus on driving sustainable development in the re- gion.” On the other hand, Abu Dhabi Is- lamic Bank Egypt’s receipt of this fi- nancing reflects its full adoption of the sustainability concept within its business strategy. Over the past years, the bank’s vision for sustain- able development has been embod- ied in its success in adopting an integrated set of initiatives and prac- tices that aim to support develop- ment at all economic, social, and environmental levels, in line with Egypt’s Vision 2030. Abu Dhabi Islamic Bank Egypt offers a variety of different financing solu- tions that meet the diverse needs of individual and corporate customers by providing a range of Shariah-com- pliant financing options, such as Murabaha, Mudaraba, and Ijara. ISSUE 175 JULY 2023 the BANKING EXECUTIVE 49