The European Bank for Reconstruction and Development (EBRD) is considering funding two banks in Egypt, according to statements issued by the Bank yesterday. The EBRD is considering a financing package of up to USD 100 mn to QNB Al Ahli comprising a senior loan for on-lending to private SMEs. It hopes the “loan will increase the availability of finance to private SMEs allowing greater access to finance for this largely underserved segment” and will accompany the funding with technical assistance to enhance QNB Al Ahli’s capacity and SME-lending know how.

The EBRD is also considering a senior unsecured loan of up to USD 40 mn to National Bank of Kuwait-Egypt (NBK-Egypt), of which USD 20 mn is expected to be co-financed by Agence Francaise de Developpement (AFD). The loan agreement, which is still pending concept review, will be under Egypt Sustainable Energy Financing Facility Framework (EgyptSEFF). The funding, the EBRD says, “will enable NBKE to support on-lending to private sub-borrowers for [energy efficient] and [renewable energy] projects, which are of particular relevance in the context of high energy intensity of the Egyptian economy. It is expected to be the first project under EgyptSEFF and follows a pilot project with National Bank of Egypt.”