FAB gains Egypt custody license as part of MENA expansion
The license follows FAB’s recent agreement to acquire Bank Audi Egypt, which included its local custody business.
February 15, 2021 1:30 PM GMT
First Abu Dhabi Bank (FAB) has obtained a custody license in Egypt, the latest milestone for its Middle East and North Africa (MENA) expansion plans.
The license, granted by Egypt’s Financial Regulatory Authority (FRA), will facilitate its membership to Misr, the country’s central securities depositary (CSD) for clearing and settlement of trades executed on The Egyptian Exchange (EGX).
It follows FAB’s recent agreement to acquire Bank Audi Egypt, including its local custody business, which will supplement FAB’s custody services expansion in Egypt. After the acquisition, FAB will be one of the largest foreign banks in Egypt with more than $8.1 billion of assets.
The license will facilitate membership of the country’s central securities depositary FAB Logo Image Credit: Supplied
Abu Dhabi: First Abu Dhabi Bank (FAB), the UAE’s largest bank, has obtained a custody license in Egypt from the Financial Regulatory Authority, Egypt’s Capital Market regulator.
The license will facilitate membership of the country’s central securities depositary, Misr for Central Clearing, Depository and Registry (MCDR), providing the integral function of settlement and clearing of trades executed on The Egyptian Exchange (EGX).
This follows FAB’s recent definitive agreement to buy 100% of Bank Audi Egypt, including its local custody franchise, which will supplement FAB’s custody services expansion in Egypt. Post-acquisition, FAB will be one of the largest foreign banks in Egypt by total assets with pro-forma total assets of more than EGP 120 billion (USD 8.1bn).
The licence will facilitate membership of the country's central securities depositary, Misr for Central Clearing, Depository and Registry, providing the integral function of settlement and clearing of trades executed on The Egyptian Exchange
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We will offer domestic investors a full range of world class post-trade solutions, with our direct MCDR connectivity at its core, said Kashif Darr, managing director & head of securities services. We will also intermediate international capital flows into this strategic market, as part of our regional direct custody platform.
Egypt is FAB s fourth direct custody market within its Middle East network. The lender provides custody services in the UAE, Saudi Arabia, Oman, Bahrain, Lebanon and Egypt. It also plans to launch services in Qatar and Kuwait.
FAB s deal to acquire the Egyptian operations of Bank Audi will make it one of the largest foreign lenders by assets in the Arab world s most populous country and North Africa s largest economy.