Egypt announced that subscriptions to the state-owned NI Capital’s Seyola fund have started with a par value of 10 Egyptian pounds ($0.64) and a minimum purchase of 1,000 pounds without an upper cap, Minister of Planning Hala al-Saeed said on Monday.
Seyola is Egypt’s first local currency cash fund with a cumulative daily return and a target issue size of between 50 million pounds to 100 million pounds.
NI Capital represents the investment arm of the state-owned National Investment Bank (NIB).
al-Saeed, who is also Chairperson of the NIB, said that the new cash fund comes as part of the strategy outlined by NI Capital to enhance its role in achieving financial inclusion.
The bank is also using the strategy to develop the capital market. At the same time, NI Capital aims to meet the market needs and requirements of its individual and institutional clients alike.
The Egyptian minister said that the NI Capital cash fund is unique in that it is the first fund established by investment managers. It is also the first cash fund to invest in transferred values, benefiting from recent legislative amendments to investment funds.
The Seyola cash fund aims to achieve a daily cumulative return commensurate with the low risk associated with the instruments invested in it. It aims to do so whilst maintaining a high degree of liquidity that allows the investor to buy and recover daily.
The fund invests its financing in liquid and short-term financial instruments such as bonds, treasury bills (T-bills), bank deposits, financing instruments, savings certificates, and other investment fund documents.
Institutional and private clients can subscribe electronically through Arabiya Online, which is owned by NI Capital, and Mubasher, while NI Capital will promote the side of large institutions.
