ADIB Egypt, IFC sign first Shariah-compliant subordinated Tier 2 financing agreement worth $50mln

ADIB Egypt, IFC sign first Shariah-compliant subordinated Tier 2 financing agreement worth $50mln

Abu Dhabi Islamic Bank (ADIB) Egypt has announced the signing of the first Shariah-compliant subordinated Tier 2 financing agreement worth $50m with the International Finance Corporation (IFC) using the Murabaha system. The financing agreement will last for five years and is expected to be included in the bank’s Tier 2 of the capital base, with no impact on shareholder rights. This step is part of Abu Dhabi Islamic Bank Egypt’s ongoing strategy to increase its capital base and financial strength, and reflects the global financial institutions’ confidence in the bank’s performance. Mohamed Aly, CEO and Managing Director of Abu Dhabi Islamic Bank Egypt, stated: “We are pleased to sign with the International Finance Corporation the first Shariah-compliant Murabaha financing agreement. This is considered the first Shariah-compliant financing for the International Finance Corporation, not only in Egypt but also worldwide. It required a lot of work and preparation with the International Finance Corporation to complete the agreement.” He added: “We are always looking for added value for us and the society at large, and we seek to expand the Islamic financing base in Egypt.” “The International Finance Corporation is a member of the World Bank Group and one of the largest