Abu Dhabi Islamic Bank (ADIB) Egypt has signed a $50 million Shariah-compliant subordinated Tier 2 financing deal with the International Finance Corporation (IFC) using the Murabaha system.
The financing deal has a duration of five years and is expected to be included in the bank’s second tier of the capital base, with no impact on shareholder rights.
The deal step is part of ADIB Egypt’s strategy to increase its capital base and financial strength and reflects the global financial institutions’ confidence in the Shariah-compliant lender’s performance.
“This is considered the first Shariah-compliant financing for the International Finance Corporation, not only in Egypt but worldwide. It required a lot of work and preparation with the International Finance Corporation to complete the agreement,” said Mohamed Aly, CEO and MD of ADIB Egypt.
“The financing agreement is expected to help drive the bank’s expansion plan towards adopting more initiatives aimed at supporting sustainable development, by providing a greater number of innovative banking solutions that are Shariah-compliant.”
ADIB Egypt’s receipt of this financing reflects its full adoption of the sustainability concept within its business strategy. Over the years, the bank’s vision for sustainable development has been embodied in its success in adopting an integrated set of initiatives and practices that aim to support development at all economic, social, and environmental levels, in line with Egypt’s Vision 2030.
“The International Finance Corporation’s first Shariah-compliant subordinated finance agreement with ADIB Egypt reflects our confidence in the bank and its commitment to building a sustainable banking strategy,” said Cheick-Oumar Sylla, director for North Africa and Horn of Africa at the International Finance Corporation.
ADIB Egypt offers a variety of different financing solutions that meet the diverse needs of individual and corporate customers by providing a range of Shariah-compliant financing options such as Murabaha, Mudaraba, and Ijara.
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