Flemings eyes Cairo as regional hub

12 November 1999
FINANCE

Flemings is looking to make its freshly launched Cairo operation a regional investment banking hub, says Rupert Wise, head of Flemings' Middle East operations. Flemings CIIC, the joint venture between the UK bank and Commercial International Investment Company (CIIC), was formally inaugurated on 24 October (MEED 5:11:99, Egypt).

'Flemings CIIC has a writ for Egypt, North Africa and the Levant, but if you believe the Gulf is going to open and liberalise - as we do - having an Arabic speaking execution capability in Cairo will be a big advantage,' says Wise. He says the demand for investment banking activities to be conducted by Arabic speakers is growing, not just for origination but also transaction advisory services, and Flemings CIIC will be 'at the cutting edge' with such resources in Cairo.

'We are already working on a GDR [global depositary receipt] issue from the Gulf,' says Wise. 'And we expect to grow this sort of business.' Wise declined to provide any further details. Banking sources in Oman say Flemings is managing the GDR issue of BankMuscat, which, subject to local regulatory clearance, is expected to be completed by the end of the year (MEED 15:10:99).

Flemings' commitment to the joint venture has been underlined by the appointments made in the three branches of Flemings CIIC. Peter Whelan, who previously worked in Flemings' capital market operations in London, is managing director of the investment banking wing. The securities company, which will operate with two licences and will eventually be called Flemings CIIC Securities, will have Paul Hart as chairman, and Mohammed Abdullah and Ahmed el-Helw as joint managing directors. Osama Nassar is the chairman and managing director of Flemings CIIC Asset Management.

All three of these companies are wholly owned by Flemings CIIC. 'In the fullness of time, we will be looking to appoint a chief executive of the holding company,' says Wise, who has a number of roles within the company. 'But at the moment, representation from Flemings and CIIC is broadly balanced.'

He adds that Yasser el-Mallawany, managing director of CIIC, will have an executive role in Flemings CIIC, and he is likely to concentrate on investment banking activities. The 50:50 joint venture between CIIC - in which Commercial International Bank (Egypt) and National Bank of Egypt are the major institutional investors - and Flemings does not include the private equity business of CIIC.

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