EBRD and EU expand access to finance for Egyptian private sector

ArabicFinance: European Bank for Reconstruction and Development (EBRD), European Union (EU) and Green Climate Fund (GCF) boost green finance and value chain development for the Egyptian private sector with funding $ 82 million to Ahli United Bank in Egypt (AUBE), according to an EBRD statement.

The package consists of a $ 30 million line of credit for on-lending to small and medium-sized enterprises (SMEs), a $ 10 million loan for the value chain under the Trade and Competitiveness program financed by the EU and a $ 12 million green value chain loan supported by the GCF and the EU, as well as a $ 30 million trade facility under the Trade Facilitation Program ( PTF) of the EBRD.

The loan will also allow AUBE to extend its support to SMEs located in remote areas outside of Greater Cairo and Alexandria.

“The value chain and green value chain loans will support SMEs in agribusiness, manufacturing and services, logistics and information and communication technologies in their efforts to improve their competitiveness, “the statement said.

The program will enable small businesses to invest in cutting-edge technologies and climate change mitigation and adaptation solutions that enhance the development of green value chains. The program also supports equal opportunities for men and women.

“The trade facility will be used to issue guarantees to confirming banks to support trade finance instruments issued by UBE and provide cash advances to finance trade-related loans for pre-export and post-export finance. import and local distribution of imported goods, “according to the bank statement.

It should be noted that AUBE is 95.7% owned by Ahli United Bank, Bahrain’s largest bank.

Egypt is a founding member of the EBRD. Since the start of its operations in Egypt in 2012, the EBRD has invested more than 8 billion euros in 138 projects in the country. The EBRD’s investment areas include the financial sector, agro-industry, manufacturing and services, as well as infrastructure projects such as electricity, municipal water supply and sanitation services. , and contributions to the modernization of transport services.

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