Chairman of Banque Misr Mr Mohamed El-Ertiby inaugurated Banque Misr's first representative office in Guangzhou, China, in the presence of H.E. Ambassador Osama Magdoub, Egypt's Ambassador to China; Mr Mamdouh Salman, the Minister Plenipotentiary and President of the Economic and Commercial Bureau in China; and Mr Omar Ezzat, Undersecretary of the Egyptian Embassy in Peking, China.
Also present were Mr Li Chang Hua, Mr Ku Ching, Mr Li Ku Yuan, Mr Ma Man Hua, and Mr Chen Shane, as representatives of the leading institutions and organizations in China. Further, the inauguration was also attended by Vice Chairman of Banque Misr Mr Akef Maghraby, General Manager of Money and Correspondent Sector Mr Effat Ishak, General Manager of Corporate Communication Dr Fatma El-Goully, and General Manager of Branch and Unit Support and Development Mr Ehab Mekkawi.
The Chinese market was prioritized as the latest target for Banque Misr's foreign representative offices, in the framework of its expansion strategy for its presence in new international markets. Further, China was selected on the basis of the deeply-entrenched bilateral relations between Egypt and China, in light of the extensive civilizational history of both countries. Over the years, China has been considered a key strategic trade partner for Egypt.
Moreover, Egypt's ratification of the Silk Road Economic Belt agreement affirms the strength of the strategic partnership between the two countries, which ensures China's access to the African continent through Egypt, via maritime, railway, and land routes.
Additionally, Banque Misr selected the city of Guangzhou to launch its representative office to extend the bank's coverage to a new region of China, whereby Guangzhou is considered one of the most important Chinese cities and the capital of the critical Guangzhou Province in the south of China. Thus, it marks China's southern entrance to the world and hosts an overwhelming majority of financial and business institutions, making it the financial center of southern China.
Guangzhou City also hosts the most important international commercial expos, while the size of its commercial transactions is estimated to constitute approximately a quarter of China's international trade. Furthermore, it is considered one of the largest industrial and commercial ports in China and the world, and the primary source of the majority of Egyptian exports to China.
It is worth noting that Banque Misr operates and exchanges direct and indirect banking facilities with the largest banks in China, covering mutual banking transactions worth hundreds of millions of dollars with these banks annually. The transactions are undertaken in various sectors, at the top of which is financing bilateral trade between the two countries (in the form of lines of credit and letters of guarantee), in addition to foreign transfers and executing payment orders, as well as other sectors.
This comes against the backdrop of the major size of business in the field of financing foreign trade and other banking activities. In this context, an loan agreement was signed for $100 million for Banque Misr from the China Development Bank (CDB) over a period of five years, to finance the former's clients who wish to undertake small and medium enterprises.
Further, currently, another loan agreement is being arranged from CDB worth $500 million over a period of eight years. Additionally, two memoranda of understanding (MoU) were signed; the first was with the China Export & Credit Insurance Corporation (Sinosure), providing Banque Misr with credit at a maximum value of $500 million to finance projects with Chinese contributions in Egypt.
The second MoU was signed with the Industrial Commercial Bank of China (ICBC), providing Banque Misr with direct facilitations against the credit issued by Sinosure, at a maximum value of $500 million, to finance projects with Chinese contributions in Egypt. The nature of the Chinese contribution varies according to the project activities, which vary between energy, equipment, construction, infrastructure, and more.
During the inauguration ceremony for Banque Misr's representative office in Guangzhou, and in the framework of the two MoU signed with Sinosure and ICBC, Banque Misr signed a term sheet with ICBC for the aforementioned MoU. The agreement is set to contribute towards financing a project by the Chinese mobile phone company Huawei, at a value of approximately $1 million.
Finally, Banque Misr offers a comprehensive range of banking solutions, on top of which comes granting credit to an extensive list of of clients with business interests in China. Further, the bank's representative office in China seeks to act as a crucial link, contributing to providing a unique service in China.