Translated version of this PSD: Arabic
Project Description
The project consists of a loan to Bank of Alexandria ("AlexBank") for up to USD 30 million under the Sustainable Energy Financing Facility for Egypt ("EgyptSEFF"), out of which up USD 15 million is expected to be co-financed by the European Investment Bank ("EIB") under the same conditions.
The project has been developed under the EBRD Green Economy Transition approach to scale up green financing.
EgyptSEFF is a comprehensive financing facility programme in the amount of up to USD 140 million for sustainable energy investments. The funds will be made available to Participating Financial Institutions in Egypt for on-lending to eligible private sector sub-borrowers for sustainable energy investments. The facility will promote penetration of energy efficient and renewable energy technologies, appliances and equipment in Egypt by stimulating demand and raising awareness of the benefits of investments in such technologies.
Project Objectives
The operation will enable AlexBank to support on-lending to private sub-borrowers for Energy Efficiency and Renewable Energy projects, which are of particular relevance in the context of high energy intensity of the Egyptian economy. It is expected to be the third project under EgyptSEFF and follows a pilot project with the National Bank of Egypt.
Transition Impact
The project will generate transition impact by promoting expansion of lending into energy efficiency and renewable energy in Egypt. It will have positive demonstration effects particularly with respect to utilising financial intermediaries for energy efficiency and small renewable energy investments.
In addition, the project will contribute to the development of the internal capacity of Alexbank for financing energy efficiency and renewable energy projects. This will be achieved by dedicated technical assistance, providing training to loan officers and helping Alexbank with product design and the establishment of the necessary procedures, tools and structures for financing energy efficiency improvements.
Client Information
BANK OF ALEXANDRIA SAE
Alexbank is one of Egypt's leading private sector banks, it is a subsidiary of Intesa Sanpaolo Group since 2007. Alexbank is a universal bank serving 1.5 million customers and providing a wide range of corporate, SME, small business and retail customers banking services in Egypt. The bank is owned at 70.25% by Intesa Sanpaolo S.p.A, 20% Ministry of Finance, and 9.75% by the International Finance Corporation.
Alexbank owns one of the largest private sector branch networks in the country, with a total of 170 branches located in every major Egyptian governorate and about 5,000 employees.
EBRD Finance Summary
USD 15,000,000.00
Senior unsecured loan of up to USD 30,000,000, out of which USD 15,000,000 is expected to be cofinanced by EIB.
Total Project Cost
USD 30,000,000.00
Environmental and Social Summary
Categorised FI (ESP 2014). AlexBank will be required to comply with the EBRD's Performance Requirements 2, 4 and 9 and submit Annual Environmental and Social Reports to the EBRD. The bank has provided information on its Labour and Working Conditions and Occupational Health and Safety practices which are in compliance with PRs 2 and 4. AXB has an Environmental and Social Management System in place since 2012 which is based on the IFC Performance Standards and the Equator Principles all in line with the EBRD Environmental & Social ("E&S") requirements under PR9. All projects under the Sustainable Energy Financing Facility (SEFF) will be required to comply with the national requirements for environment, health and safety and labor standards as well as the E&S eligibility criteria for Energy Efficiency and Renewable Energy projects. This will be confirmed to Partner Financial Institutions by a Project Consultant who will be hired by the EBRD to cover this issue.
Technical Cooperation
AlexBank will benefit from the support of the grant resources from the European Union's Neighbourhood Investment Facility and expected funds from the EBRD Shareholder Special Fund provided under the EgyptSEFF framework. Donor funds will support a comprehensive technical assistance programme to provide i) implementation support AlexBank and its customers, and ii) verification of the outcome of completed projects, as well as investment incentives to AlexBank and end borrowers.
Company Contact Information
Tamer Seif El Din - Head of Corporate Banking Products Division
+2 (202) 2399 2000
https://www.alexbank.com/en
AlexBank-Egypt, Head Office 49 Kasr El Nile Street
Business opportunities
For business opportunities or procurement, contact the client company.
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