Egypt's regulator has rejected a request by Citadel Capital to raise its capital, citing reasons that included the failure of the private equity firm to give adequate justification, it said in a letter.

The regulator's letter, obtained by Reuters via a source at the bourse, was dated Sunday and addressed to a member of the firm's board.

It said Citadel Capital had requested raising its issued capital to 4.4 billion Egyptian pounds ($739 million) from 3.3 billion pounds.

The Egyptian Financial Supervisory Authority said that 'it has been decided not to agree to your company implementing the request from the company's board to proceed with measures for the increase.' - Reuters