Project Description
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").
Project Objectives
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.
Transition Impact
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.
Client Information
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
USD 20,000,000.00
USD 20,000,000
Total Project Cost
USD 20,000,000.00
USD 20,000,000
Additionality
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
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
PSD last updated
31 Oct 2022
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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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.
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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.
