EBRD and British International Investment provide US$ 100 million subordinated loan to Banque du Caire

By Nibal Zgheib

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Skyline over the Nile in Cairo, Egypt before sunset

  • EBRD and British International Investment joint financing to strengthen Banque du Caire’s Tier II capital growth plans
  • EBRD to provide further technical support to improve BDC’s corporate climate governance practices
  • BII to provide guidance for management of environmental and social risk to enhance reputation

The European Bank for Reconstruction and Development (EBRD) and British International Investment (BII) are providing a US$ 100 million subordinated loan to Banque du Caire (BDC), one of Egypt’s largest banks, strengthening BDC’s Tier II capital. This facility will support the growth plans of Banque du Caire and optimise its capital structure.

Providing long-term, Tier II funding will accelerate BDC’s ambitious growth plans, increasing its capital and guaranteeing the availability of much-needed funds to enhance BDC’s growth within various sectors of the market. With one of Egypt’s largest branch networks (248 branches nationwide), a market-leading position in microfinance, and a strategic push towards digital distribution channels, BDC is well placed to serve market segments that are critical for advancing financial inclusion in the country.

As part of the cooperation, the EBRD will support BDC in implementing a corporate climate governance action plan (CCGAP), helping to integrate climate change considerations into the bank’s corporate practices, in accordance with the principles of the Task Force on Climate-related Financial Disclosures.

Alongside this support, BII will play an integral role in shaping BDC’s strategy and organisational culture by providing guidance on the management of environmental and social (E&S) risk, aiming to support BDC in managing such risks in its business operations. This will help enhance the bank’s reputation and improve its prospects of accessing more foreign capital to support sustained growth.

EBRD Managing Director for Financial Institutions Francis Malige said: “The EBRD has a longstanding commitment to Egypt and its financial sector. This project deepens our partnership with BDC, building on our successful cooperation in trade and inclusion. We are delighted to develop it together with BII, to support the bank’s capital and resilience and to help BDC strengthen its corporate practices and become more resilient to the impacts of climate change.”

Sherine Shohdy, BII Head of Office and Coverage Director, Egypt added: “Strong and resilient financial institutions play a crucial role in fostering productive private sectors and robust economies. Our partnership with the EBRD aims to strengthen BDC’s capacity to support businesses that drive Egypt’s economic growth. BII will also offer its expertise on E&S to help BDC define a strategy and culture that will enhance the bank’s resilience, help attract more capital and create productive and inclusive opportunities for businesses, employees and households across Egypt for the long term.”

Banque du Caire’s Chairman and CEO Tarek Fayed commented: “The bank spares no effort to accelerate the pace of transformation towards a green economy and to achieve Egypt's 2030 vision. We are proud of the strategic partnership with the EBRD and BII, reflecting the confidence of multilateral financial institutions in Banque du Caire’s vision for the future.”

Mr. Fayed added that Banque du Caire pays great attention to MSMEs based on the bank's leadership position in this field, explaining that this cooperation aims to inject more financing to support these sectors and support the bank's ambitious plans in the field of climate change, which effectively contributes to achieving inclusive and sustainable economic growth.

Egypt is a founding member of the EBRD. Since the start of its operations there in 2012 the Bank has invested more than €10 billion in 163 projects in the country. 

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