The European Bank for Reconstruction and Development (EBRD) is considering lending USD 325 mn to four local banks for on-lending to local SMEs and green projects, the bank’s head of institutional funding Hashem Abdel Hakim reportedly told AsharqBusiness. If the plan goes through, the four banks are set to receive the funds before the end of 2023, Abdel Hakim told the news outlet.

Caveat: Nothing is set in stone. An EBRD rep we spoke with confirmed the facilities are being discussed, but said the bank is yet to sign off on anything. It is also not clear if this is an extension of the USD 175.5 mn announced in January by the EBRD for SMEs and green projects or an additional upcoming project.

Under the plans:

  • Our friends at CIB would receive USD 150 mn for on-lending to SMEs and environmental projects;
  • The National Bank of Egypt will receive USD 100 mnfor SME lending. The International Cooperation Ministry said earlier this year that the EBRD would provide a USD 400 mn loan to the state-owned lender;
  • Banque du Caire will also back SME projects with a USD 50 mnEBRD loan;
  • The Export Development Bank (EBank) will receive a USD 25 mn loan to provide FX liquidity to importers.

It’s not just the EBRD: The IFC said this week that it would lend USD 234 mn to Banque Misr to finance MSMEs and women-led businesses.

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