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- EBRD and Banque Misr sign a US$ 100 million sustainability-linked loan in Egypt, the first to a financial institution in the region
- New financing to promote green on-lending to women-led businesses and underserved segments in the Egyptian private sector
- Funds to support Banque Misr’s ambitious sustainability targets
The European Bank for Reconstruction and Development (EBRD) is supporting the competitiveness of Egypt’s banking sector and the country’s sustainability goals with a US$ 100 million (€85 million) sustainability-linked loan to Banque Misr.
The loan will enable Banque Misr to make more financing available to local women-led or owned micro, small and medium-sized enterprises (MSMEs), as well as to low-income individuals for affordable housing.
The financing will also support Banque Misr’s sustainable green lending to private MSMEs and address financing gaps to underserved segments in the Egyptian market.
Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Egypt's Governor at the European Bank for Reconstruction and Development (EBRD), underscored the Ministry's collaborative efforts with international partners to galvanize resources and catalyze private sector investment, specifically within the ambit of green transformation initiatives, as part of a holistic strategic framework aimed at realizing sustainable development. Consequently, concessional financing extended to the private sector has seen an increment, surpassing USD 15.6 billion since 2020. She lauded the strategic partnership forged with the EBRD, which allocates a significant proportion of its portfolio—exceeding 28%—to financial institutions, as an integral component of its overarching private sector support endeavours.
She also underscored the paramount significance of the concerted endeavors undertaken by the Central Bank of Egypt and the Financial Regulatory Authority in refining the regulatory framework governing the financial sector. This consequential action facilitates the introduction of novel financial instruments and sophisticated products into the marketplace, thereby augmenting financial inclusion and expediting the transition towards sustainable financing paradigms.
Francis Malige, Managing Director, Financial Institutions Group, EBRD, said: “This is a landmark transaction—not just for Banque Misr and the EBRD, but for the broader MENA region. Sustainability is important across the world, but it is particularly important in this region which combines climate and water stress. This signing also reflects the strong partnership EBRD and Banque Misr have built over the years and sends a clear signal: sustainability and commercial performance can go hand in hand. We're pleased to support Banque Misr as it grows its green lending and expands access to finance for segments that are too often underserved.”
Mr. Hisham Okasha, CEO of Banque Misr, highlighted that this loan agreement unequivocally demonstrates the Bank's steadfast commitment to Egypt’s sustainable development. This transcends a mere financial transaction; it rather epitomizes Banque Misr's unwavering dedication to accelerating the green transition, fostering financial inclusion and driving the systemic change, through efficacious and impactful strategic partnerships. This collaborative endeavor signifies a salient advancement within Banque Misr's protracted legacy of pioneering initiatives and consolidates its stature as a pivotal catalyst for sustainable development by utilizing innovative financing solutions and fortifying collaborative ties with International financial institutions. Such contributions are instrumental in building a resilient national economy, adept at surmounting environmental and social challenges and realizing paramount sustainable development imperatives.
Okasha also underscored that Banque Misr stands as a pioneer within the banking sector for its integration of sustainability and sustainable finance pillars into its activities. Banque Misr holds the distinction of being the first state-owned bank to publish its annual business reports in adherence to the rigorous standards set forth by the Global Reporting Initiative (GRI) and the United Nations Global Compact (UNGC). Furthermore, it was among the inaugural banks to endorse ethe United Nations Principles for Responsible Banking (UNEP FI).
Okasha lauded the concerted endeavors of the teams representing all involved entities in the successful culmination of one of the most salient transactions executed by Banque Misr. This exemplary professionalism facilitated the efficacious conclusion of the aforementioned agreement, thereby reaffirming Banque Misr's unwavering commitment to advancing sustainable development initiatives across Egypt.
Banque Misr was established in 1920 and is the second-largest bank in Egypt. It has been a partner of the EBRD since 2017, when it signed its first small business loan, followed by a trade finance facility in 2018, a US$ 200 million financing package for trade and on-lending to SMEs in 2020 and a US$ 100 million loan for green financing in 2022 and in 2023.
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012 the EBRD has invested more than €13.3 billion in 202 projects across the country.