EGP 1 Billion Fund Launched to Restructure Distressed Factories

The Central Bank of Egypt and Ministry of Industry have launched an EGP 1 billion Distressed Factories Restructuring Fund to invest in industrial companies facing financial or operational difficulties while retaining viable assets and production capacity.

The fund was launched at the central bank’s headquarters with representatives from contributing banks including the National Bank of Egypt, Banque Misr, Arab African International Bank, Agricultural Bank of Egypt and Export Development Bank of Egypt.

The fund will take direct equity stakes in distressed companies operating across food industries, engineering, chemicals, textiles and ready-made garments, pharmaceuticals and building materials. Its investment team will work with selected businesses on restructuring plans that may include loan restructuring, fresh capital injections, operational-efficiency programmes and stronger corporate governance. Factories seeking support will apply through the Ministry of Industry’s Manufacturers Support Platform, where funding applications will be assessed.

The Financial Regulatory Authority approved the vehicle as a closed-ended private equity fund, with subscriptions opening on October 4th. Registered as Fund No. 1033, it will offer one billion investment units at a nominal value of EGP 1 each through a private placement for eligible financial institutions, public and private legal entities and other qualified investors.

CI Capital B.I. for Fund Management, Investment and Venture Capital will manage the fund, with investment decisions based on feasibility studies and its net assets valued twice annually with input from independent advisers registered with the regulator.