At its EGM held on January 27, Egyptian Gulf Bank (EGB) approved a capital increase through cash subscription. The bank’s capital will increase from USD255.6 million to USD287.9 million. The total capital increase of USD129.4 million will be done in tranches decided by the board of directors. The first tranche will amount to USD32.34 million split over 32.34 million shares. We believe the increase in capital has to be seen in the context of the introduction of lower single obligor limits by the CBE earlier this year: banks can now lend 15% of their Basel II capital to a single corporate, down from the previous cap of 20%. (EGB release to stock exchange, Elena Sanchez-Cabezudo)   Egyptian Gulf Bank: USD1.34 as of 02 February 2016, Rating: Neutral, FV: USD1.60 per share, MCap: USD342 million, EGBE EY / EGBE.CA