QNB Al Ahli - Solidarity Loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

This project was approved as part of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Provision of a senior unsecured loan to QNB Alahli ("QNBAA") of up to USD 100 million, under the Bank's Resilience Framework ("RF"). Proceeds of the proposed loan will be on-lent to local private Small and Medium Enterprises ("SMEs"), and to Corporates to cover financing needs that may arise as a result of the Covid-19 outbreak.

Project ID 52008

Status Complete

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

Company Contact Information

Sally HAMDALLA
Sally.HAMDALLA@QNBALAHLI.COM
+ 202 2770 7321
www.qnbalahli.com
QNB ALAHLI Dar Champollion, 5 Champollion st. down town P.O.Box 2664, Cairo Egypt

Project ID 52008

Status Complete

Location

Egypt

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

23 Apr 2020

Disclosure date

04 May 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

QNB Al Ahli - Solidarity Loan (Arabic) (PDF, 0.77MB)

Project description

Project objectives

The proceeds of the loan will help QNBAA in providing funding to local SMEs and Corporates experiencing either a decrease in their activity, turnover and/or profitability, in turn leading to delays in payments and potential defaults, or growing capacity needs due to a significant fluctuation in demand in particular sectors.

Transition impact

ETI Score:70

transition impact of the project will stem from its contribution to the continued functioning of the Egyptian economy by helping private SMEs and Corporates to address challenges brought by the current crisis. The project will also help QNBAA maintain its competitiveness in the market.

Client information

QATAR NATIONAL BANK ALAHLI SAE

QNBAA is a commercial bank incorporated in Egypt. It is the fourth-largest Egyptian bank by asset size and the second largest private bank. The bank recorded assets of EUR 15.2bn with market shares of 4.7%, 8.1% and 4.9% by assets, loans and deposits, respectively, as of YE2019. It is 94.97% controlled by Qatar National Bank QPSC (Qatar).

EBRD Finance Summary

USD 30,000,000.00

Total project cost

USD 30,000,000.00

Additionality

COVID-19 crisis response allowing QNBAA to respond to liquidity needs for SMEs and corporates experiencing slowdown and payment delays, or increased capacity needs following a massive fluctuation in demand.

Environmental & Social Summary

Category FI (2019 ESP). QNB AlAhli is an existing client and will be required to continue to comply with PRs 2, 4 and 9, apply the EBRD's E&S Risk Management Procedures for Corporate and SME loans, and submit annual environmental and social reports to the Bank.

Technical Cooperation and Grant Financing

N/A

Company Contact Information

Sally HAMDALLA
Sally.HAMDALLA@QNBALAHLI.COM
+ 202 2770 7321
www.qnbalahli.com
QNB ALAHLI Dar Champollion, 5 Champollion st. down town P.O.Box 2664, Cairo Egypt

Implementation summary

Under the Solidarity Programme EBRD extended facilities to 5 systemic PFIs in the Egyptian market for a total funding of USD 390 million by year-end 2021. This encompassed the largest private and state-owned banks in the country, which demonstrated the need for liquidity support at the time as well as EBRD's continued effort to support our clients during times of crisis. The programme has served our clients well and has allowed them to tackle unanticipated systemic shocks favourably.

The project with QNBAA was instrumental in catalysing the Solidarity Programme in Egypt, given that it was the first in the country, which helped translate into 4 other transactions with PFIs. Additionally, the project played a significant role in allowing QNBAA to achieve its objectives as part of EBRD's TI assessment. The Solidarity loan helped QNBAA to i) bridge their liquidity needs during the pandemic given the growing credit risk in the market, ii) expand their SME portfolio further and enhance their competitive advantage across the sector, and iii) support the private sector in Egypt in remaining resilient during these unprecedented circumstances. These targets align with the TI objectives set forth by EBRD upon approval and continue to help serve the EBRD's mandate in Egypt.

PSD last updated

27 Mar 2023

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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

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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QNB Al Ahli - Solidarity Loan

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)