US$ 20 million trade finance line to EGBANK
The trade finance line will allow EGBANK to issue guarantees in favour of international commercial banks, covering the commercial payment risk of the transactions undertaken by EGBANK. The EBRD will also provide cash financing for pre-export and post-import financing.
EBRD President Suma Chakrabarti, said: “We are very pleased to team up with EGBANK and welcome it to our Trade Facilitation Programme. This facility will boost cross-border trade in the country, reaching out to Egyptian exporters and importers as well as contributing to overall economic growth.”
EGBANK CEO and Managing Director, Nidal Assar, said: “We are honoured and appreciative of the cooperation with the EBRD that aims to foster our trade finance business; fulfilling the needs of our clients and giving us the opportunity to expand our investments in major lucrative markets.”
Technical capacity building to EGBANK including advisory services, e-learning programmes, and interactive workshops will accompany this trade finance facility, to transfer know-how and share best practices in trade finance.
Launched in 1999, the EBRD’s Trade Finance Programme aims to promote foreign trade to, from and among the countries in which the EBRD invests. Through the programme, the EBRD provides guarantees to international confirming banks and short-term loans to selected banks and factoring companies for on-lending to local exporters, importers and distributors.
The TFP currently includes over 100 partner banks in 28 countries where the Bank invests, with total transaction value of €15 billion, and more than 800 confirming banks worldwide.
EGBANK is a young contemporary bank striving to offer an unusual, fresh, hospitable and modern experience, with a commitment to serve the economy, community and environment. Since its establishment in 1981, the bank has grown steadily over the years, maintaining a profitable and solid portfolio, and followed an organic expansion strategy under the mission of providing value-added services offered in untapped fields. EGBANK has been nominated by the Egyptian press and internationally as the fastest growing bank in Egypt and Africa for the past two years.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested more than €3 billion in 66 projects in the country. The EBRD’s areas of investment include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The Bank has also provided technical assistance to more than 600 small and medium-sized local enterprises.