NI Capital closes Siula fund’s initial subscription with inflows exceeding LE1.075B

By | Investment Management

Egypt’s Minister of Planning and Economic Development Hala El-Said announced the closure of subscriptions to the NI Capital’s first money market fund, “Siula”, with an inflow volume exceeding LE 1.075 billion. El-Said, who is also Chairperson of the Board of Directors of the National Investment Bank (NIB), noted that the fund is in Egyptian pounds with a cumulative daily return.

The minister added that the closing of the subscription comes before its scheduled date of 10th of March 2021, due to the large turnout witnessed during the initial subscription phase. She said that the tremendous success achieved by NI Capital, the NIB’s investment arm, at launching “Siula” as its first money market fund, evidence of the quality of its performance. It also highlights the growth of the role it plays in the field of non-banking financial services (NBFS) in Egypt.

El-Said said that introducing this type of investment products would contribute to attracting more investments in Treasury bills (T-bills) and governmental bonds, which would stimulate the economic development process.

CEO of the NIB and Chairperson of NI Capital, Mahmoud Montaser, said, “We are proud that NI Capital successfully launched “Siula” Fund, which is a continuation of its growing role in providing non-banking financial services.” “This means that NI Capital continues to meet the market’s need for new savings products that allow individuals and institutions to invest in T-bills and government bonds,” he added.

For his part, Mohamed Metwally, CEO and Managing Director of NI Capital, commented on the success of the offering, saying, “NI Capital’s ability to cover the initial offering of “Siula” fund by more than 21 times reflects the experience of the company’s employees in issuing and promoting such investment funds.”

He added, “It also shows the support of the leadership at the National Investment Bank to the company, and the confidence of policyholders in NI Capital and the National Investment Bank.”

Metwally said that the coming period will witness an expansion in the activities and services provided by the company to meet the needs of its institutional and individual clients. This comes especially after the acquisition of Arabiya Online Brokerage was completed last month.

Managing Director for investments at NI Capital, Hazem Kamel, thanked those in charge of “Siula”, as well as those who have been working on it for their combined efforts for its success.

He described the success of the initial offering as “a testimonial we are proud of from our clients, and we promise to achieve the desired objectives and outcome of the fund.”

“Siula” fund aims to achieve a daily cumulative return appropriate with the degree of low risk associated with the instruments it invests in. It also looks to maintain a high degree of liquidity that allows the investor to buy and redeem daily, effective from 17 February 2021.

The fund invests its short-term financial instruments such as bonds and bills, T-bills, bank deposits, savings certificates, and other low-risk investments.

The door for subscription in the fund was opened on 10 January with a target issue of LE 50 million. NI Capital received requests that led to the issuance being covered by more than 21 times the targeted size of the fund.

Starting from Wednesday 17th of February 2021, the door will be opened to receive daily purchase and redemption orders in “Siula” through “Arabiya Online” and “Mubasher” companies for individuals and institutions, in addition to NI Capital for large institutions.


Minister of Planning And Economic Development Announces The Launch Of NI Capital’s First Money Market Fund

By | Investment Management

Minister of Planning and Economic Development and Chairperson of the Board of Directors of the National Investment Bank (NIB), Dr. Hala El Said, announced that NI Capital – NIB’s investment arm, has launched its money market fund “Siula”, which comes as part of its strategy of to reinforce its role in achieving financial inclusion and developing the Egyptian capital market.

El-Said highlighted that the fund will invest in liquid and short-term financial instruments, including bonds; T-bills; banking deposits; certificates of deposits and other low-risk instruments.

NI Capital also aims to cater for the needs and requirements of its individual and institutional clients alike, according to the minister.

El-Said added that ‘Siula’ fund is the first of its kind to be established by an investment bank in Egypt and that it is also the first money market fund to invest in movable collaterals, benefiting from recent legislative amendments to investment funds’ laws.

“NI Capital’s introduction of its first money market fund is a new step in the path of the leading company in the field of providing non-banking financial services, and an enhancement to its unique role,” said CEO of NIB and Chairman of NI Capital, Mahmoud Montaser.

CEO and Managing Director of NI Capital, Mohamed Metwally illustrated that the fund comes as a continuation of the success achieved by NI Capital in managing the investment portfolios of many investors, whether from government entities or private sector companies.

Hazem Kamel, Managing Director of Assets and Investment Management at NI Capital, said that the company is working on introducing new and innovative products in the coming period as part of its strategy to support the state’s plan and to achieve the sustainable development goals. He added, “the NI Capital’s “Siula” fund seeks to introduce and make available new investment tools to achieve financial inclusion and avail them to different groups within our society, whether they are institutions or individuals.”

The ‘Siula’ fund aims to achieve a daily cumulative return corresponding with the low risk associated with the instruments invested in it while, maintaining a high degree of liquidity that allows the investor to buy and sell their certificates on daily basis.

Worth mentioning, NI Capital has contracted ‘Arabiya Online’ which is owned by it, in addition to the ‘Mubasher’, to receive subscriptions and promote the fund among customers from the segments of individuals and institutions with the ability to receive subscriptions electronically, while NI Capital will promote the fund to large institutions.

Last year, NI Capital established the National Investment Charity Education Fund with the aim of providing sustainable financing for educational projects while managing charitable work, the size of the fund has so far reached EGP 150 million, according to the planning ministry.

NI Capital was established in 2015 as an independent financial services company, acting as an independent catalyst for promoting public-private cooperation and attracting both domestic and foreign expertise to add value through promoting sustainable economic and social development across Egypt.

It also provides an integrated set of investment banking, investment management services and financial advisory in the Egyptian market. It also manages the government IPO program to attract local and foreign investments to the Egyptian exchange and diversify sources of income for the government.