Minister of Planning and Economic Development Hala el-Saeed has announced the closing of subscriptions to NI Capital’s first cash fund, the Liquidity Fund, with an issue exceeding LE1 billion.
El-Saeed, who is also Chairperson of the Board of Directors at the National Investment Bank (NIB), noted that the fund is in Egyptian pounds with a cumulative daily return.
The closing of subscriptions comes ahead of its scheduled date, 10 March 2021, due to the large turnout witnessed during the subscription period, el-Saeed said.
The tremendous success achieved by NI Capital, the NIB’s investment arm, means that it will launch a liquidity fund as its first cash fund, which is evidence of the excellence of its performance and highlights the growth of its role in non-banking financial services (NBFS), el-Saeed added.
Introducing this type of investment product would attract more investment in Treasury bills (T-bills) and government bonds, which would stimulate economic development, she said.
Mahmoud Montasser, CEO of NIB and NI Capital chairman, said, “We are proud that NI Capital successfully launched the Liquidity Fund, which is a continuation of its growing role in providing non-financial services.”
“This means the bank continues to meet the market’s need for new savings vessels
that allow individuals and institutions to invest in T-bills and government bonds,” Montasser 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 issuance of the liquidity fund by more than 21 times reflects the experience of the company's employees in issuing and promoting investment funds.”
“It also shows the support of the leadership at the National Investment Bank in the company, and the confidence of policyholders in NI Capital and the National Investment Bank,” Metwally added.
The Liquidity Fund aims to achieve a daily cumulative return commensurate with the degree of low risk associated with the instruments invested in it. It also looks to maintain a high degree of liquidity that allows the investor to buy and redeem daily, effective from today.
The door for subscription in the fund was opened on 10 January with a target issue of LE50 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, the door will be opened to receive daily purchase and redemption orders in liquidity fund documents through the companies Arabiya Online and Mubasher for individuals and institutions, in addition to NI Capital for large institutions.
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