EBRD backs National Bank of Egypt with $119.5mn to support MSMEs

By bne IntelliNews May 23, 2024

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.

Related Articles

Egypt and Russia sign supplementary agreements to advance El-Dabaa nuclear plant

Egypt and Russia have signed a supplementary intergovernmental agreement to push forward the El-Dabaa nuclear power plant project in Egypt, Al Arabiya reported on July 8, citing a statement from ... more

Malawi-focused Mkango Resources' unit to merge with US-based Crown PropTech

Lancaster Exploration (Lancaster), a subsidiary of Mkango Resources (Mkango), has announced a merger with Crown PropTech Acquisitions (CPTK), a US-listed special purpose acquisitions company. ... more

Africa adds 4.5GW new hydropower capacity in 2024, says IHA

Africa made notable progress in hydropower development in 2024, adding over 4.5 GW of new capacity, more than double the 2 GW installed in 2023, according to the International Hydropower Association ... more

Dismiss