Rana Mamdouh _ The Board of Directors of OB Financial Holding Company approved the provision of an interest-free subordinated shareholder loan to Contact Financial Holding Company amounting to EGP 287.5 million.
OB Financial Holding stated in its disclosure sent to the Egyptian Exchange (EGX) today that the loan will be capitalized in light of Contact's capital increase.
It is worth noting that the Board of Directors of Contact Financial Holding Company approved the day before yesterday submitting a proposal to the Ordinary General Assembly regarding obtaining an interest-free subordinated shareholder loan from main shareholders up to a maximum amount of EGP 700 million.
Contact stated in its disclosure sent to the Egyptian Exchange (EGX) at the time that the Chief Executive Officer and Managing Director presented the company's expansion plan and its necessary financial resource requirements, as well as the financing needs required to adjust the positions of certain subsidiaries in accordance with the requirements of the Financial Regulatory Authority (FRA) and the decisions issued thereby, and injecting the necessary funds to increase the capital of the subsidiaries.
It pointed out that the total expected amounts required to increase the company's capital to implement the expansion plan range between EGP 1.6 billion and EGP 18 billion, at the nominal value for all shareholders.
