GDR issue in July Commercial International Bank (CIB) of Egypt is to launch its long-awaited global depositary receipt (GDR) offering in July, the third such issue by a Middle Eastern bank and the first by an Egyptian company.

National Bank of Egypt is selling part of its minority stake in CIB through the offering, which is expected to raise $80-$100 million according to a statement from CIB. 'Application has been made for the GDRs to be listed on the London Stock Exchange,' it says. The offering is being co-ordinated by ING Barings.

'This marks a significant strategic development for our company and for the Egyptian business and financial community.' CIB's managing director Adel el-Labban says. The bank is Egypt's second largest private sector bank in asset terms and the second largest by market capitalisation on the Cairo bourse.

CIB is the third Arab bank to tap the international markets by way of a GDR issue, following Banque Audi of Lebanon and Banque Marocaine de Commerce Exterieur (BMCE).

Funds raised through a GDR issue are deposited with a custodian bank and the receipts themselves are traded on an international exchange. The benefit of a GDR for investors is that it gives them access to the stock companies in fast-growing emerging markets, without exposure to the risks of investing directly or the technical and liquidity problems sometimes associated with new stock markets.