The Financial Supervisory Authority agreed to publish a disclosure report on the progress of the procedures for doubling the authorized capital of the Egyptian Export Development Bank from 5 billion pounds to 10 billion pounds.
The authority stated that the approval includes an increase in the issued bank’s capital from 2.728 billion pounds to 3.273.6 billion pounds, an increase of 545.6 million pounds distributed over 54.560 million shares with a nominal value of 10 pounds per share.
It stated that the increase will be 0.20 shares for each original share with compensation for fractions in favor of small shareholders, noting that the increase will be funded from the 2019/2020 profits at an amount of 545.6 million pounds, according to the bank’s financial statements on 30 June.
This came in accordance with the provisions of Article 48 of the Egyptian Stock Exchange listing rules regarding the decision of the Board of Directors of the Egyptian Export Development Bank, which was held on January 20.
The disclosure of the capital increase, which the Authority agreed to publish, specified the justifications and reasons for the amendment, and the methods of using the funds in the case of the free increase, which were as follows:
– Maintaining cash and distributing bonus shares instead of cash distribution.
– Meeting the requirements of shareholders regarding the increase in dividends, through the distribution of bonus shares, which will positively affect the market price and increase trading on the stock.
Strengthening the capitalist base and making it more stable.
Complete the necessary construction and finishes for the new bank headquarters in the Administrative Capital.
Completing the infrastructure to keep pace with digital transformation by increasing investment in intangible assets (programs) as well as devices related to automated systems.
– The bank’s plan to continue to expand and spread, as it is planned to open a number of new branches.
– Continuing to implement the bank’s strategy, which attaches special importance to strengthening the export activity and expanding the granting of financing to new customers, with a focus on exporters, increasing the size of the loan and facilities portfolio, including the portfolio of small and medium enterprises, as well as increasing the volume of financing granted to retail customers to gain market share.
Regarding the justifications and reasons for modifying the authorized capital, the disclosure clarified that it is due to absorb future increases in the issued capital through cash subscription or free shares in accordance with the requirements of the Central Bank of Egypt to increase the bank’s capital base, and the bank’s business plan during the next five years, which targets The growth of the volume of activity and the business and the consequent necessity of strengthening the bank’s capital base in order to meet the risks arising from the growth of the volume of the bank’s business and activity.
The article “Financial Control” approves measures to increase “Export Development” capital to 3.27 billion pounds, and was written in the Al-Borsa newspaper.