Two weeks after the Bank of Israel awarded a conditional license to new Israeli bank Esh, the bank has announced that Clal Insurance and Finance will invest NIS 100 million in the Esh group, taking a 4.99% stake in each of the group companies, the bank and the technology company. The bank said that the investment values the group at NIS 8 billion.
The new bank is still building up its shareholders’ equity in order to expand its capacity for giving credit. Esh plans to offer current accounts and will seek to recruit as customers private individuals, self-employed people, and companies. It will also offer deposits, loans, payments, and credit cards. In order to offer terms that are competitive with those of the existing banks, Esh will need large shareholders’ equity. For the time being, and until deposits from customers build up, the shareholders have committed to inject capital into the company.
The shareholders, who received the license to set up, manage and control the new bank, are Yuval Aloni, Nir Zuk, Alex Liverant, and Alon Shine. Former Israel Securities Authority chairman Shmuel Hauser will be chairperson of the bank, and Kobi Malkin, formerly CEO of Bank Massad and Bank Otsar Hahayal, will serve as CEO of the bank. Former deputy governor of the Bank of Israel Dr. Nadine Baudot-Trajtenberg will be deputy chairperson.
Barak Benski, a senior VP and investment manager at Clal Insurance Enterprises Holdings said, "We think that this is a different bank on the Israeli landscape, one that will generate value for its customers, and that the investment will yield a higher return than the alternatives to Clal Insurance and Finance’s savers."
Esh Group CEO Yuval Aloni said, "We welcome Clal Insurance and Finance, which will join the existing shareholders, who have so far invested over NIS 100 million. After the deal is completed, investment in the Esh Group will total over NIS 200 million. This investment will enable us to develop the product in accordance with the group’s vision before we enter the market."
Published by Globes, Israel business news - en.globes.co.il - on January 8, 2023.
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