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Sunday, 7 August 2022

NBK Egypt could be getting up to USD 40 mn from EBRD to lend to small busineses

Another EBRD loan to NBK Egypt? The European Bank of Reconstruction and Development (EBRD) is considering providing a USD 40 mn senior unsecured loan to the National Bank of Kuwait Egypt (NBK Egypt) for on-lending to micro, small and medium-sized businesses, according to the lender’s website.

A senior loan? A senior bank loan is money lent to a business by a financial institution which is then repackaged and sold to other investors.

It’s all for MSMEs: The financing would “support NBK Egypt's lending activities and expand access to finance for the underserved MSME segment,” the bank said.

What’s next: The lender is set to approve the loan on 7 September.

This isn’t the first time that NBK Egypt has sought EBRD help: The bank has agreed several rounds of financing with the European lender since 2015, mostly recently a USD 100 mn loan in 2020 to support private sector firms through the pandemic and USD 25 mn last year to fund green energy projects.

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