EBRD lends USD 40 mn to EFG Holding in first direct facility for MSMEs

The European Bank for Reconstruction and Development (EBRD) is lending our friends at EFG Holding USD 40 mn to expand financing for MSMEs — its first direct facility to the parent company, according to an EBRD statement. The funds will flow through subsidiaries of its NBFI platform, EFG Finance, and target businesses in rural areas outside major cities, where it’s hardest to access finance.

REMEMBER- EBRD has been lending into EFG’s network for years, just not to the holding company itself. The bank has previously extended facilities to EFG subsidiaries Bank NXT, Tanmeyah, and Valu, including a EGP 600 mn loan in June to Valu to finance household purchases of solar power and EV-related products.

This is the latest in a run of EBRD facilities targeting Egypt’s MSME financing gap. In July, the bank extended a USD 15 mn (c. EGP 795 mn) senior loan to GlobalCorp to back local MSMEs, with a stated focus on clients outside Cairo. In March, it extended a USD 50 mn SME-focused package to NBK Egypt, including a USD 20 mn Youth in Business line aimed at under-35 entrepreneurs, women-led businesses, and underserved rural areas. EBRD just co-led Cairo-born fintech Paymob’s USD 35 mn pre-Series C round with Mubadala, with the funds earmarked for regional expansion and adding new products aimed at SME merchants and agentic commerce. The bank has invested close to EUR 15.4 bn across 234 projects in Egypt since it began operating here in 2012, according to the statement.

It’s been a good week for our friends: EFG Hermes picked up fresh honors this week, keeping its corporate access crown at the Extel Emerging EMEA survey for the second year running.