GCF GEFF Egypt Commercial - NBK II

Location:

Egypt

Project number:

51935

Business sector:

Financial institutions

Notice type:

Private

Approval date:

20 Apr 2021

Status:

Approved

PSD disclosed:

23 Apr 2021

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."

Project Description

Provision of up to USD 25 million senior unsecured loan to National Bank of Kuwait i Egypt ("NBKE"), under the regional GCF GEFF programme. Up to USD 3.75 million of this loan  is expected to be co-financed by the Green Climate Fund ("GCF") under the same conditions.

Project Objectives

The EBRD loan will enable NBKE to (i) support on-lending to private sub-borrowers for green, energy efficiency and renewable energy projects, which are of particular relevance in the context of high-energy intensity of the Egyptian economy, and (ii) to support high performance technologies and services supporting a green economy.

Transition Impact

ETI score: 75

ETI score: 75

The project supports the Green TI quality through the provision of funding and technical assistance to NBKE to promote private sector investments in efficient climate change mitigation and adaptation technologies. This will support building a green economy in Egypt by facilitating the accelerated market penetration of climate technologies.

Client Information

NATIONAL BANK OF KUWAIT EGYPT SAE

NBKE is a commercial bank incorporated in Egypt, with total assets of EUR 3.6 billion. NBKE has a market share of 0.9%, 1.4% and 1.0 % by assets, loans and deposits, respectively as of YE 2020.  It is 95% controlled by National Bank of Kuwait, Kuwait's largest bank, with over 30% market share as of YE 2020.

EBRD Finance Summary

USD 21,250,000.00

Up to USD 25 million

Senior unsecured loan of up to USD 25 million, of which up to USD 3.75 million is expected to be co-financed by GCF.

Total Project Cost

USD 25,000,000.00

Up to USD 25 million to be provided in USD

Additionality

The project offers a combination of longer-term financing and technical expertise into a package that promotes targeted investment in sustainable energy, in the highly diversified private sector in Egypt.

Environmental and Social Summary

Categorised FI (2019 ESP). Under previous exposure, NBKE has demonstrated compliance with PRs 2, 4 and 9. The Client will be required to continue to apply the EBRD's E&S Risk Management Procedures for SME loans, including the updated exclusion and newly introduced Referral List stemming from ESP 2019. NBKE's E&S performance will be monitored through the review of annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

NBKE is expected to benefit from the support of the grant resources from the EBRD Shareholders Special Fund ("SSF"). Donor funds will support a comprehensive technical assistance programme to provide implementation support to NBKE and its customers, and verification of the outcome of completed projects. Grants are expected to provide investment incentives to NBKE and end-borrowers.

Company Contact Information

Karim Kamal
Karim.Kamal@NBK.com.eg
+ 202 2614 9374
https://www.nbk.com/egypt/
Plot 155, City Centre, First Sector, Fifth settlement, New Cairo, Cairo, Egypt.

PSD last updated

23 Apr 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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