The European Bank for Reconstruction and Development (EBRD) is partnering with QNB Alahli to support small- and medium-sized enterprises (SMEs) and energy efficiency in Egypt with a $140m financial package.
QNB Alahli is one of the EBRD’s largest clients in the financial sector, with a partnership totalling $370m dedicated to supporting SMEs, trade, and the green economy.
The current package includes a loan of up to $100m for on-lending to SMEs and a credit line of up to $40m for energy efficiency investments—this consists of $20m committed by the EBRD and $20m expected to be co-financed by the European Investment Bank (EIB) which is supported by a $5.8m grant provided by the European Union Neighbourhood Investment Facility.
Mohamed El Dib, chairperson and managing director of QNB Alahli, said cooperation with the EBRD in these remarkable transactions are in line with the bank’s ambitions to support Egypt’s business and social community, its economic development—with particular emphasis on development of the SME segment—and Egypt’s international trade, as well as the promotion of the green economy.
“The European Union has provided a €23m grant through the SEMED Sustainable Energy Financing Facility to help dismantle the numerous barriers that face the private sector and are preventing financial institutions, strategic investors and project managers from operating actively and efficiently in financing sustainable energy projects,” said Diego Escalona Paturel, head of Cooperation at the EU Delegation to Egypt.
The EBRD has invested close to €2bn in Egypt through 36 projects since the start of its activities in the country at the end of 2012.
