CAIRO: Dubai government-owned investor Dubai Capital Group bought a 5.24 percent stake in Egypt s Commercial International Bank (CIB), the two companies said in a statement on Sunday. The Dubai group bought the shares from the Egyptian and London stock exchanges over recent months and its holding crossed the 5 percent threshold in the last two or three weeks, CIB investor relations officer Sherif Khalil told Reuters. Dubai Capital Group is the regional investment management company of Dubai Group, a financial services company of Dubai Holding focused on banking, investments, and insurance regionally and globally. The group's activities include investment banking, asset management and alternative investments, with a concentration on semi-governmental and governmental institutions in the Middle East and North Africa (MENA), according to a press statement. Dubai Capital Group's investment portfolio includes Sphinx Glass Factory, Tamweel, and a $1 billion joint venture with Qatar Investment Authority. Mustafa Farid Geninah, the group's CEO, said, "Our investment in the Commercial International Bank - one of the best rated banks in Egypt - is part of our mandate to establish long-term strategic partnerships in the region that add value to our portfolio and our shareholders. "We believe that the bank's excellent performance in its competitive home market, backed by solid management expertise, is second to none. This investment strengthens the capital base of CIB, providing us opportunities in an environment which has been challenged by the changes in the global financial services sector. For its part, CIB said, "This news lays the foundation for a new strategic partnership in the region with a leading group, where both parties can leverage on opportunities present in Egypt and the region. Furthermore, with global markets suffering from mortgage lending defaults and the resulting credit crunch, the deal on hand reflects Dubai Capital Group's confidence in CIB s management and major shareholders. CIB, Egypt s largest lender by market value, has a market capitalization of LE 14.4 million. Last week, the bank received a $250 million (LE 1.3 billion) loan from the US government - financed by the Overseas Private Investment Corporation (OPIC) - to expand low- and middle-income mortgage lending in Egypt. CIB said it would allocate 80 percent of the loan - $200 million (more than LE 1 billion) - to other Egyptian public lenders, including Housing and Development Bank and Egyptian Real Estate Bank, to help originate long-term mortgages to low-income homebuyers. The remaining 20 percent of the loan ($50 million) will be extended directly to CIB's mortgage finance portfolio that caters to middle-income homebuyers.
