Provision of a senior unsecured loan of up to USD 40 million to the National Bank of Kuwait S.A.E (NBKE) under the Financial Intermediaries Framework ("FIF"), to be on lent to eligible Micro small and medium enterprises ("MSMEs")
The EBRD loan will support NBKE's lending activities and expand access to finance for the underserved MSME segment.
ETI score: 60
Competitive:The project will support NBKE's lending to private MSMEs in Egypt, where the gaps in access to finance are High, with a focus on regional outreach and attracting new MSME clients.
Resilient: The project aims to ensure prudent lending practices and adequate portfolio quality.
NATIONAL BANK OF KUWAIT EGYPT SAE
The National Bank of Kuwait S.A.E is the 13th largest bank and 10th largest private bank in Egypt with assets that amount to EUR 4.2 billion as at H1 2022. As of March 2022, NBKE had a market share of 0.9%, 1.3% and 0.9% in terms of total assets, loans and deposits respectively. The Bank is a subsidiary of National bank of Kuwait, Kuwait's largest bank with over 30% in market share, which owns 99% of the shares.
EBRD Finance Summary
Total Project Cost
The 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 MSMEs in Egypt.
Environmental and Social Summary
Categorised FI (2019 ESP). Under previous exposure, NBK Egypt 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 the SME loan 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
The loan will be accompanied by a TC component, supported by the EBRD Shareholder Special Fund, to further develop and improve NBKE's MSME lending policy and procedures. It will also help NBKE in the development and implementation of a credit-scoring model for MSME lending, later useful in the step towards digitalization for NBKE.
Company Contact Information
PSD last updated
04 Aug 2022
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