Overview of CFG Bank

CFG Bank, established in Morocco in 1992, is a pioneering institution in investment banking. Over the years, it has transitioned into a universal bank, offering a full range of banking products and services. The bank is noted for its innovative approach and strong commitment to client service, having launched a hybrid banking model that combines traditional commercial banking with digital solutions.

In November 2015, CFG Bank entered the commercial banking sector with the goal of providing a differentiated and simplified banking experience. Through a modern network of branches and cutting-edge technology, it has successfully integrated high digital functionality into its services, setting itself apart from traditional banks. Today, CFG Bank operates 17 branches and 86 intelligent ATMs, managing loans amounting to nearly 7.3 billion MAD and deposits totaling approximately 9.6 billion MAD.

Industry Overview in Morocco

The Moroccan banking sector has undergone significant transformation in recent years, driven by technological advancement and a growing emphasis on financial inclusion. The government has implemented reforms to enhance the regulatory framework, facilitating the emergence of innovative financial products and services. This dynamic environment has laid the groundwork for new entrants and improved competition within the sector.

Furthermore, Morocco's strategic geographical position as a gateway to Africa has positioned the country as an attractive destination for financial service investments. The country's banking system is marked by a mixture of established players and emerging institutions like CFG Bank, which are keen on leveraging technology to meet the evolving needs of consumers.

The growth of fintech companies has also disrupted traditional banking models, pushing incumbents to innovate and enhance their digital offerings. As a result, Moroccan banks are investing significantly in technology infrastructure and customer experience enhancement to maintain their competitive edge.

Additionally, the rise in digital banking has been accelerated by increasing smartphone penetration and internet accessibility. This shift is fostering a more inclusive financial ecosystem, allowing banks to reach underserved populations and cater to the growing demand for convenient banking solutions.

Rationale Behind the Deal

The exit of Amethis from its investment in CFG Bank marks a significant milestone, as it aligns with Amethis' fund expiration timeline while showcasing CFG Bank's continued growth potential. Amethis' involvement since 2018 has equipped CFG Bank with the necessary capital and expertise to thrive during a critical period of its development.

Moreover, the successful sale of Amethis shares primarily to existing shareholders indicates their confidence in CFG Bank's future performance and growth trajectory. This reflects the bank's robust operational improvements and market positioning as a modern financial institution.

About the Investor - Amethis

Amethis Capital is an investment fund manager focused on the African continent, founded by Luc Rigouzzo and Laurent Demey. With nearly USD 1 billion in assets under management and over thirty investments, Amethis specializes in providing growth capital to promising mid-sized companies across various sectors. The firm has a strong international network that enhances its ability to support portfolio companies through strategic guidance and operational improvements.

Since its inception, Amethis has been committed to fostering growth in Africa, ensuring sustainable development within the markets it operates. Through offices in Paris, Abidjan, Casablanca, Nairobi, Cairo, and Luxembourg, Amethis brings extensive expertise and local market knowledge to its investment strategies.

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This exit represents a strategically timed move for Amethis, highlighting the successful realization of their investment objectives in CFG Bank. Given CFG Bank's strong performance and its innovative banking model, this transaction can be considered a prudent investment decision. CFG Bank has positioned itself well within the Moroccan market, providing a unique banking experience that leverages technology effectively.

Furthermore, CFG Bank’s sustained growth, evidenced by its expanding branch network and customer base, showcases its potential for future profitability. Investors’ keen interest in CFG Bank during this exit suggests a robust belief in the bank’s long-term viability and its ability to navigate market challenges effectively.

Overall, Amethis' tenure with CFG Bank substantiates the positive impact of private equity investment in local companies, actively contributing to their development and operational success. The bank's commitment to innovation and excellent customer service enhances its prospects within the Moroccan banking sector.

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