More green finance for SMEs, courtesy of the EBRD
Banque Misr in line for more EBRD climate financing: The European Bank for Reconstruction and Development (EBRD) could soon sign off on a USD 100 mn facility to state-owned Banque Misr to finance local SMEs working on green projects, according to the lender’s website. The state-owned bank will on-lend the money to small businesses in manufacturing as well as the retail, transport and agricultural sectors that use “climate change mitigation and adaptation technologies,” it says. The EBRD is scheduled to give its final approval for the unsecured financing on 15 December. The institution has been committing more financing to green projects in Egypt and elsewhere in the developing world under its recently-announced Green Cities Compact scheme.
The EBRD has been particularly active in SME lending for green projects, with its green economy financing facility (GEFF), which has been up and running in Egypt since 2017 and has channeled some EUR 140 mn to green investments by private companies through local banks. An EUR 150 mn extension, financing business in agriculture, construction and manufacturing, was announced in November 2020. The EBRD greenlit a USD 25 mn loan to the National Bank of Kuwait Egypt in April, a USD 50 mn loan to QNB AlAhli in June, and had said it was considering a USD 22 mn loan for green projects to Ahli United Bank Egypt.
OTHER DEBT NEWS- Tatweer Misr will borrow EGP 3.5 bn to finance its Monte Galala and Bloomfields projects, CEO Ahmed Shalaby said, according to Amwal Al Ghad. Shalaby told CNBC Arabia last week that the company will borrow that amount in January.
EDITOR’S NOTE- This story was corrected on 14 November to remove the National Bank of Egypt and AAIB as the two banks providing Tatweer with the loan.