Cairo: Banque Misr, Egypt’s second-largest lender, has hired an international bank to manage a $500 million (Dh1.83 billion) medium-term syndicated loan as it seeks to fund growth through low-cost debt. The state-run bank is working with the financial adviser to find lenders to underwrite the loan it hopes to secure in the third quarter, Banque Misr’s chairman, Mohammad Al Etreby, said in an interview, without naming the bank. Banque Misr is planning to expand its operations as the Egyptian government presses ahead with sweeping economic changes aimed at boosting growth, cutting costs and trimming a bloated public sector. Officials are looking to sell stakes in some public companies and banks.
“It’s better to rely now on international loans because their interest rates are good,” Al Etreby said, adding that’s why Banque Misr decided to postpone plans to issue international bonds to next year.
