Fact Sheet: Housing & Development Bank

Overview

Name: Housing & Development Bank SAE Reuters Code HDBK.CA

Established: 1979

Listed on the EGX: 1983

Scope and activities: The Housing and Development Bank SAE is an Egypt-based commercial and investment bank that principally operates in the housing and development sector. HDBK has two distinct operations. Financial operations, with personal and business retail banking, public housing projects financing, as well as mortgage financing and fund management. HDBK is also directly invested in real estate activities, through both wholly and partially owned subsidiaries that develop, construct and sell residential, commercial, and touristic real estate, as well as manage and secure communities, in addition to marketing real estate for third parties and managing reservations for government-built housing projects. The company also works on accepting deposits, issuing housing and construction savings certificates, banking, granting loans and affiliation facilities, and investing the bank’s funds to ensure achieving its objectives and develop its resources, in particular: -Establishment of joint companies -Financing all housing-related businesses – Collection, reception, and payment of money, including agency and financial representation for clients, and provision of investment services. ^[1]

Company Vitals:

How much land does HDBK own?

Based on the de jure method (See Methodology), HDBK owns 1420 acres in Cairo, both directly, but mostly indirectly through three main subsidiaries: The Housing and Development for Real Estate Investment Co., which it owns 95% of, and Hyde Park Properties for Development SAE (54%), which are its major subsidiaries. HDBK also owned 40% of City edge Developments SAE by the end of 2021, though its major shareholder – as well as HDBK’s major holder, the New Urban Communities Authority (NUCA), has since upped its share. This varied shareholding means that under the control method (See Methodology), HDBK’s landholdings rise to 1621 acres, where 100% of Hyde Park’s landholdings are included, while all of City Edge’s land is omitted given the minority shareholding. Overall, the bulk of HDBK’s land was acquired by 2010, reaching a peak of 1805 acres (Figure 1). Since then, its main subsidiaries have not acquired any significant land, and two co-development agreements on its Hyde Park New Cairo plot have seen its holdings under control drop to 1621 acres at the end of 2021.

Figure 1: HDBK landbank accumulation analysis – Control Method 2002-2021 (Acres). Sources: See Appendix A

Who owns HDBK?

HDBK was originally set up by the government of Egypt in 1979 as a sectoral bank, used to finance applicants for government housing units. It has since expanded into other facets of the housing and real estate industry, where it was partly floated on the EGX in 1983. Since then, however, the government of Egypt is still HDBK’s largest shareholder by far, owning almost 60% of the company through five SOEs (Figure 2). The second largest holder is Saudi businessman Ali Dayekh (10%), followed by another countryman, Abdelmoniem al-Rashed (9.8%). The Egyptian El-Shukairy family own a little less than 5% of HDBK, led by businessman Mohamed El-Shukairy. The remaining 15% of company stock is held by a handful of international funds and smallholders on the EGX.

Figure 2: HDBK shareholding structure according to the UBO method as of 2021 Q4 (See Appendix B and Methodology)

Investor Nationalities

Using the tax resident (TR) method (See Methodology), Egypt-based investors are the largest holder of HDBK stock at 72% (Figure 3). They are followed by companies based in the UAE holding almost 20% of the company. The third largest shareholders are smallholders on the EGX of unknown nationalities (8%),

According to the ultimate beneficial owner (UBO) method (See Methodology), Egypt remains the largest shareholder with 72% of HDBK stock, now followed by Saudi Arabia-based investors holding 20% of the company. Owners of unknown nationalities, mostly smallholders on the EGX free float, are the third largest shareholders owning less than 8% of HDBK.

Figure 3: HDBK shareholding by nationality under the TR and UBO methods

Investor Types

Egypt-based SOEs hold 59% of HDBK under the UBO method, making them the largest shareholder type by far (Figure 4). High net worth individuals – the two Saudi Arabian and the Egyptian businessman, are the second largest investor type holding one-quarter of HDBK shares. Smallholders on the EGX hold 15% of the company, while investors in private non-listed, as well as listed companies and funds, own less than 2% of HDBK.

Figure 4: HDBK shareholding by investor type – UBO

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Appendix A: Landholding Information

Appendix B: Shareholding Information

Direct Shareholding:

Indirect Shareholding:

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^[1] HDBK Consolidated Financial Statement for the year ended 31.12.2021, p.1