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Monday, 23 August 2021

Tamweely could be in line for a total of EGP 500 mn in loans from local, foreign institutions

Microfinance player Tamweely is in talks with a syndicate of three local banks to obtain EGP 300 mn finance in the coming period to help grow its microfinance portfolio, CEO Ahmed Khorshid told Hapi Journal. Khorshid did not specify a timeline for the transaction, but said the company was in talks with Abu Dhabi Islamic Bank in Egypt, and two other local banks.

More loans incoming: Tamweely is also negotiating with the government’s Micro, Small and Medium Enterprises Development Agency (MSMEDA) to obtain EGP 100 mn in financing after receiving EGP 74 mn in financing from state-run National Bank of Egypt through MSMEDA, according to Khorshid.

And the company is edging closer to EGP 100 mn funding from abroad, Khorshid said. Though he did not name the lender, Chairman Amr AbouElazm had said in April that the company was close to obtaining an EGP 100 mn loan from the European Bank for Reconstruction and Development (EBRD) to boost its microfinance portfolio.

Tamweely loaned out a total of EGP 1 bn in 1H2021 to 77k beneficiaries — compared to 75k at the end of 2020 — 54% of whom were youth, and 40% of whom were women, he said. The company also plans to loan out EGP 150 mn through Mezza cards under a partnership with state-owned Banque Misr in April.

Tamweely is also mulling the introduction of nano-finance in 2022, once it receives sign-off from the Financial Regulatory Authority (FRA), and also plans to provide micro leasing products to SMEs after obtaining an FRA-regulated SME microfinancing license, which it expects to come through in 2022, Khorshid said.

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