CDC approves $100m Tier 2 capital deal to Egypt's CIB

The UK's CDC Group has closed a deal to provide $100 million of Tier 2 capital to Egypt's Commercial International Bank.

The purpose of the Tier 2 capital is to strengthen the bank’s capital base, so it can underpin growth and expansion in lending; and to support its lending to exporting sectors of the economy, in line with the government’s agenda to develop alternative sources of hard currency outside of tourism.

This deal comes just a year after the regulator granted CDC approval to provide Tier 2 capital - which CDC says is scares in Africa - to the Egyptian banking sector.