Provision of a senior unsecured loan of up to USD 20 million to Qatar National Bank ALAHLI S.A.E ("QNB ALAHLI") under the Financial Intermediaries Framework - Egypt Youth in Business ("YiB") programme, for on-lending to eligible private Micro, Small and Medium Enterprises ("MSMEs") whose overall operational management responsibility or majority ownership is held by a person (or persons) under the age of 35 as defined in the Policy Statement ("Youth MSMEs").
The project is expected to increase the pool of financing available to young individuals in Egypt and to help this group of borrowers build their skill-set and develop their businesses, thereby promoting youth entrepreneurship and youth's participation in business through an integrated approach.
ETI score: 67
Inclusive:The project will increase the availability of finance for youth led businesses to improve their skill-sets, know-how and expand their business capabilities in the market.
Competitive: The project will contribute to the sustainable expansion of the Client's youth-led (or majority owned) MSME loan portfolio. Additionally, the loan will support QNB ALAHLI in the development and refinement of products, services and/or delivery mechanisms that cater to the needs of young entrepreneurs.
QATAR NATIONAL BANK ALAHLI SAE
QNB ALAHLI 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 20.6bn with market shares of 4.1%, 5.8% and 4.6% by assets, loans and deposits, respectively at H1 2022. QNB ALAHLI is 94.97% owned by Qatar National Bank.
EBRD Finance Summary
Total Project Cost
The YiB loan offers a combination of longer-term financing than what is available in the market, and technical expertise dedicated to capacity building, in addition to a gender-based focus, into a package that promotes financing for youth led and/or majority owned MSMEs in Egypt.
Environmental and Social Summary
Category FI (2019 ESP). QNB ALAHLI is an existing client and has been the recipient of Technical Cooperation in December 2020 to assist them in developing an E&S Management System tailored to their needs. QNBAA's E&S risk management procedures have been reviewed and are compliant with EBRD's PR9 and relevant procedures. The Client is required to continue to comply with PRs 2, 4 and 9, and submit annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
The project will be accompanied by the following Technical Cooperation components: (1) capacity building for QNB ALAHLI, that aims to assist with the product implementation, marketing and general awareness raising, training and pipeline development; and (2) capacity building to the enterprises in the form of trainings and mentoring, with the aim to strengthen entrepreneurial skills and mind-set via EBRD's Advice for Small Businesses programme. The technical cooperation is expected to be funded by the grant resources from the EBRD Shareholder Special Fund ("SSF"). The loan will also be accompanied by first-loss risk cover for up to 10% of the disbursed YiB sub-loan portfolio, subject to the availability of donor funds, to be paid to QNB ALAHLI and incentive grants will be provided to eligible micro and small sub-borrowers in order to alleviate the lagging impact from COVID-19. Grant support will be funded by the European Union and the SSF.
Company Contact Information
+ 202 2770 7321
QNB ALAHLI Dar Champollion, 5 Champollion st. down town P.O.Box 2664, Cairo Egypt
PSD last updated
31 Oct 2022
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