Banque Misr, a prominent financial institution in Egypt, is planning to establish a green investment fund in the first quarter of 2024, according to Daily News Egypt.
This fund would focus on investing in companies that adhere to environmental, social, and governance (ESG) standards, with a particular emphasis on those listed on the Egyptian Exchange (EGX).
Banque Misr is currently preparing to seek approval from the Central Bank of Egypt (CBE) for the fund, which is expected to follow Standard & Poor’s sustainability index. However, the size of the fund has not yet been determined.
Green investment funds are mutual funds that finance companies that prioritize environmental and societal standards, which are becoming increasingly popular among investors and consumers worldwide.
Banque Misr is also exploring the possibility of listing its recently launched real estate fund on the EGX, following its growth to a size of approximately EGP 360m. Additionally, the bank has plans to establish a new real estate fund in 2024 with an initial capital of EGP 500m to attract individual investors.
In December 2022, Banque Misr, in collaboration with Banque du Caire, Misr Insurance Holding Company, and Allianz Insurance, launched its “Egypt Real Estate Investment Fund 1” with the aim of investing in commercial properties with periodic returns. This fund also provides mechanisms for investors seeking to invest in real estate while distributing risks across several properties owned by the fund.
Banque Misr’s General Assembly has approved an increase in the bank’s paid-up capital to EGP 50bn, compared to EGP 15bn at the end of 2021, and its authorized capital to EGP 120bn, compared to EGP 30bn.
In 2022, the bank reported growth in its total financial position, net direct loans to customers, and loans to individuals and institutions. With these developments, Banque Misr is poised to play a significant role in promoting sustainable investments and expanding its financial services in Egypt.
