Blom Bank Egypt will sell 25 million new shares at £E10 each to existing shareholders, after receiving approval from the Egyptian Capital Market Authority (CMA) on 31 August.

The capital increase will be used to fund the continued operations and expansion of the company.

Blom Bank’s Egyptian subsidiary was formed following its purchase of 99 per cent of Misr Romania Bank for $97.8m in December 2005.

Shares in Blom Bank Egypt were last being traded at around £E30.