Emirates NBD Egypt Subordinated Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 47752

Status Repaying

Location

Egypt

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 47752

Status Repaying

Location

Egypt

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

07 Sep 2016

Disclosure date

03 Aug 2016

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a financing package of up to USD 125 million to Emirates NBD's Egyptian subsidiary. The facility will comprise a subordinated loan to support the planned growth of the bank and the financing of SMEs in the local market. The loan will be disbursed in two tranches of USD 50 million and USD 75 million respectively. The second tranche is uncommitted.

The subordinated debt will be subject to regulatory approval by the Central Bank of Egypt.

Project Objectives

The subordinated debt will strengthen the capital base of Emirates NBD Egypt to support planned growth and the financing of SMEs in the local market.

Transition Impact

The subordinated debt will strengthen the capital base of Emirates NBD Egypt, a medium-sized, international commercial bank in a sector that remains dominated by state-owned banks (approximately 40% market share). The financing will also increase the availability of bank finance to private SMEs, an underserved market segment The project will be the first example of a subordinated loan provided by a third party on the Egyptian market and as such will introduce a new asset-class which has been supported by policy dialogue with the Central Bank of Egypt.

Client Information

EMIRATES NBD S.A.E

Emirates NBD Egypt is the 13th largest Egyptian bank based on total assets with a market share of c. 1.2%.

It provides a wide range of corporate, retail and investment banking services in Egypt through its 63 branches. Its Parent, Emirates NBD, the leading bank in the Gulf Cooperation Council (GCC) region and in the United Arab Emirates, entered the Egyptian market in June 2013 through the acquisition of the BNP Paribas subsidiary in Egypt.

EBRD Finance Summary

USD 125,000,000.00

Total Project Cost

USD 125,000,000.00

Environmental and Social Summary

Categorised FI (2014 ESP). Categorised FI (2014). Emirates NBD Egypt will be required to comply with EBRD's PRs 2, 4 and 9, adopt and implement the EBRD's E&S Risk Management Procedures for Corporate and Small Loans and submit Annual Environmental and Social Reports to the Bank. For the TFP loan the client will be required to apply the EBRD's E&S Procedures for Trade Finance.

Technical Cooperation

None.

Company Contact Information

Ramzi Aissa - Head of Strategy and Planning
ramziai@emiratesnbd.com
+ (202) 2726 5727
http://emiratesnbd.com.eg/egypt-en/index.cfm
Emirates NBD-Egypt, Head Office Plot No. 85 El-Tesseen Street 5th Settlement, New Cairo, Egypt

Transition impact

ETI Score:60

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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