Asian Infrastructure Investment Bank (AIIB) and the OPEC Fund for International Development (OPEC Fund) have signed an agreement to provide a $200m loan to the National Bank of Egypt which will be directed into funding the infrastructure sector in Egypt.
AIIB Vice President for Policy and Strategy Sir Danny Alexander attended the loan agreement signing ceremony in the United Arab Emirates.
This is AIIB’s first non-regional syndicate loan in the financial institutions sector and NBE’s first on-lending project directed to the infrastructure sector. AIIB will support NBE with its ongoing efforts to enhance its sustainability initiatives.
“This is AIIB’s first engagement with an Egyptian bank and the project will help NBE diversify its funding sources for lending to the infrastructure sector,” said AIIB Vice President, Investment Operations (Region 2) Konstantin Limitovskiy. “It is fully aligned with AIIB’s thematic priority to advance sustainable infrastructure and, in partnership with the OPEC Fund, will support the Government of Egypt’s intention to bridge the maturity gap between the demand for longer-term loans and the availability of short-term deposits in the Egyptian financial system.”
Hesham Elsafty, NBE’s Group Head, Financial Institutions and International Financial Services, said the infrastructure sector is of great importance to Egypt and its economy. “With the USD200 million in funding from AIIB and the OPEC Fund, NBE will be in a position to expand its existing funding to this crucial sector, hence improving services offered to Egyptian corporates and making a wider impact on the economy as a whole,” said Elsafty.
Tareq Alnassar, OPEC Fund Assistant Director General, Private Sector and Trade Finance Operations, signed the agreement on behalf of the OPEC Fund in Abu Dhabi. The signing took place during AIIB’s Sixth Annual Meeting of the Board of Governors. With the theme “Investing Today, Transforming Tomorrow,” AIIB’s 2021 Annual Meeting is being held virtually on 26-28 October.
“Egypt’s significant infrastructure needs can be met by increasing investments in both public and private sectors, and banks such as NBE will play a critical role in deploying funding where it is most needed,” said Alnassar. “We are delighted to support NBE’s efforts for on-lending to the private sector and pleased to cooperate for the first time directly with AIIB in a partner country that is important to our institutions. Our loan aligns well with several Sustainable Development Goals (SDGs), such as SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure).”
