IFC takes 7% stake in Banque du Caire through $100m IPO investment

By Divya Shah

Why it matters: The investment strengthens access to finance in Egypt, supports SME growth, and highlights the role of development finance institutions in mobilising private capital through capital markets.

IFC, the private sector arm of the World Bank Group, invested $100 million in the initial public offering (IPO) of Banque du Caire, acquiring an approximately 7% equity stake in the Egyptian lender.

The investment is intended to strengthen Banque du Caire’s capacity to expand financing for businesses and households across Egypt, with a particular focus on supporting private sector growth and economic development.

Access to finance remains a key challenge for many businesses in Egypt, especially micro, small and medium-sized enterprises (MSMEs). These businesses contribute more than one-third of the country’s GDP and employ nearly 40% of its workforce, yet many continue to face funding constraints that limit growth and investment opportunities.

Hussein Abaza, CEO and Managing Director of Banque du Caire, said, “As a publicly listed institution, we remain focused on building on our established strengths, maintaining disciplined risk management and sound governance, and pursuing sustainable growth that creates lasting value for our shareholders, customers and the wider economy. We value IFC’s participation as a long-term institutional investor and look forward to further strengthening our partnership in support of the bank’s next phase of development.”

IFC and Banque du Caire have maintained a longstanding partnership aimed at expanding access to finance for businesses in Egypt, particularly smaller enterprises. Beyond capital investment, IFC has supported the bank in strengthening its environmental and social management framework and enhancing corporate governance practices.

Ary Naïm, IFC’s Division Director for North Africa and the Horn of Africa, said, “Through our partnership, we aim to help businesses access the finance they need to grow, invest, and create more and better jobs, while mobilizing private capital to support Egypt’s development priorities.”

The investment also supports the Egyptian government’s Asset Monetisation Program (AMP), which seeks to increase private sector participation in the economy. Banque du Caire’s IPO is expected to broaden the bank’s investor base and attract additional domestic and international capital.

IFC’s investment was matched by the European Bank for Reconstruction and Development (EBRD), which also committed $100 million to the offering. Together, the two multilateral development banks invested a total of $200 million in the IPO.