German development bank KfW’s Green for Growth Fund (GGF) now has a license from the Central Bank of Egypt (CBE) to act as a “tier-two” lender in Egypt, the fund announced in a press release (pdf) yesterday. The license will see GGF provide loans to Egyptian banks to help finance energy efficiency, resource efficiency and renewable energy projects.

Background: The GGF is a public-private partnership fund initiated by the European Investment Bank and KfW that finances green projects in 19 countries, both directly and to financial institutions for on-lending. It has made EUR 99 mn in sub-loan investments in Egypt since its founding in 2009. It has previously provided National Bank of Egypt, Alexbank, and Banque du Caire with facilities of USD 10-30 mn to finance local green projects.

OTHER DEBT NEWS-

NBE, local banks to dish out another EGP 25 bn to Geico for Abu Qir Port: The National Bank of Egypt (NBE) will lead a banking syndicate offering an EGP 25 bn loan to construction firm Gharably Integrated Engineering Company (Geico) for the development of the New Abu Qir city and port, reports Al Shorouk, citing unnamed sources it says has knowledge of the matter. Enterprise reached out to NBE officials, who did not return a request for comment by dispatch time.

This is double the amount Geico secured last September. The construction outfit received a EGP 12.3 bn loan, through a consortium of local state-owned and private sector banks, to upgrade the Abu Qir port. NBE Chairman Hisham Okasha had said it was the largest joint loan of 2021 and the largest financing for a contracting operation in recent years. Geico had in January 2021 signed an EGP 3.8 bn syndicated loan agreement to upgrade the port.