The European Bank for Reconstruction and Development (EBRD) has extended a loan of $119.5mn (€109mn) to the National Bank of Egypt (NBE) to support micro, small, and medium-sized enterprises (MSMEs). 

The EBRD funding is part of a potentially wider programme that will be implemented in different stages. It aims to diversify NBE’s funding base and support its financial inclusion plans in the region. 

The loan, which includes a B loan from the Netherlands-based asset manager ILX Fund, marks the first provided to a financial institution in Egypt with an A/B structure, and is poised to focus on under-served regions and support businesses owned or led by women or youth.

“By supporting access to finance for under-served MSMEs, we are contributing to more inclusive and sustainable economic growth in Egypt,” said Heike Harmgart, EBRD managing director for the Southern and Eastern Mediterranean region, in a statement on May 21.

NBE is the largest commercial bank in Egypt. It cooperates with the EBRD in providing trade finance lines that support the financial inclusion of under-served segments of the economy, and fostering renewable energy and energy efficiency projects.

Since the start of the EBRD operations in Egypt in 2012, the bank has invested more than €11.9bn in 178 projects, with 81% of these investments injected into the private sector.

In September 2023, Abu Dhabi Exports Office (ADEX), the export-financing arm of the Abu Dhabi Fund for Development (ADFD), signed an $100mn financing agreement with the NBE, reinforcing trade and economic relations between the UAE and Egypt. The deal seeks to bolster economic activities and promote cross-border trade relations. 

This week, Fitch Ratings revised upward its long-term debt outlooks for four of Egypt’s major banks, including NBE, to 'positive; from 'stable', signifying its growing confidence and the country’s improved macroeconomic stability.