EBRD and partners fund more green finance for SMEs + EBRD, BII lend USD 100 mn to BdC
DFIs to fund more green projects + privatization candidate BdC gets funding: More funding for green projects will be available to local SMEs courtesy of the European Bank for Reconstruction and Development (EBRD), the EU, and the Green Climate Fund. Meanwhile, EBRD and British International Investment said they would provide a USD 100 mn facility to support Banque du Caire’s growth.
LOCAL FIRMS ARE IN FOR MORE GREEN FINANCE-
The EBRD, the EU, and the Green Climate Fund (GCF) will provide USD 175.5 mn to local banks to on-lend to green projects and SMEs in Egypt, the EBRD said in a press release yesterday. The funding comes under the EBRD’s Green Economy Financing Facility (GEFF), which channels finance to small, private-sector businesses to help them invest in energy-efficiency projects and green technologies.
This isn’t GEFF’s first gig in Egypt: Egypt has received up to EUR 290 mn from GEFF under a first round of funding. The facility has partnered with the National Bank of Egypt, QNB Alahli, Alexbank and Arab African International Bank for on-lending to SMEs.
2022 was a big year: The EBRD provided EUR 1.3 bn to Egypt in 2022, 70% of which was directed towards the private sector to promote social inclusion and green transformation, the International Cooperation Ministry said yesterday.
BANQUE DU CAIRE TO GET EBRD MONEY-
EBRD, BII to finance Banque du Caire growth: The European Bank of Reconstruction and Development (EBRD) and British International Investment (BII), the UK government’s development finance arm, are providing a USD 100 mn loan to state-owned Banque du Caire, they said in a joint statement (pdf) yesterday. The loan will strengthen the bank’s Tier II capital, helping to support its growth plans. The two lenders will also provide technical support and guidance to improve BdC’s climate governance practices and ESG risk management.
REMINDER- BdC is one of the names being floated for an EGX debut some time soon. The state-owned bank is a perennial IPO prospect and was among four companies that the EGX recently said are ready to list on the bourse. It is also reportedly among the companies included in the Sovereign Fund of Egypt’s pre-IPO fund.