Banque du Caire - Sub-debt

Location:

Egypt

Project number:

52891

Business sector:

Financial institutions

Notice type:

Private

Approval date:

09 Jun 2022

Status:

Approved

PSD disclosed:

19 May 2022

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.

Project Description

Provision of a subordinated loan of up to USD 50 million to Banque du Caire ("BDC") to support the bank's growth plans.

Project Objectives

The subordinated loan will strengthen BDC's Tier II capital to support the bank's growth plans. In addition, the financing is accompanied with a Corporate Climate Governance ("CCG") Action Plan, which will help BDC take steps towards adopting and implementing the recommendations set out by the Task Force on Climate-related Financial Disclosures ("TCFD") at an institutional level.

Transition Impact

ETI score: 60

Resilient: The project will contribute towards strengthening the capital adequacy of a systemic financial institution.

Well-governed: The project will support BDC to implement improvements in its climate governance practices and build a framework for managing climate related risks and opportunities, contributing towards BDC's ambitions for implementing solid foundations for CCG at an institutional level.

Client Information

BANQUE DU CAIRE SAE

BDC is the 5th largest bank in Egypt with total assets of USD 16.3bn as of year-end 2021 and market shares of ca. 3.0% in terms of assets, 3.2% in terms of loans, and 3.1% in terms deposits. The bank operates the 3rd largest branch network in Egypt, and is ultimately owned by Banque Misr, the second largest bank in Egypt.

EBRD Finance Summary

USD 50,000,000.00

Up to USD 50,000,000.00

Total Project Cost

USD 50,000,000.00

Up to USD 50,000,000.00

Additionality

The project will (i) offer long-term financing to support BDC's growth plans, (ii) support BDC in adopting advanced CCG practices through the provision of a targeted technical assistance package focusing on capacity building and (iii) promote gender-responsive lending practices and inclusive workplaces through the provision of dedicated training.

Environmental and Social Summary

Categorised FI (ESP 2019): BDC is an existing client of the Bank and has been reporting on its E&S performance under existing exposure. Previous due diligence and monitoring of the Client's E&S performance demonstrate BDC has overall labour and health and safety procedures in line with EBRD's requirements. BDC complies with the exclusion list, and is currently developing an E&S management system and its related policies and procedures in line with EBRD's PR9 requirements. BDC's E&S performance will be monitored through the review of annual reports submitted to EBRD.

 

Technical Cooperation and Grant Financing

The project will be supported by a comprehensive technical cooperation programme to provide CCG implementation support to BDC.

Company Contact Information

Ayman Khattab - Head of Financial Institutions
Ayman.Khattab@bdc.com.eg
+202 (0) 22646694
https://www.bdc.com.eg/
Banque du Caire 6 Dr. Mostafa Abou Zahra Street Nasr City Cairo Egypt

PSD last updated

19 May 2022

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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