EgyptSEFF - NBK-Egypt

Location:

Egypt

Project number:

47499

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

04 Oct 2016

Status:

Complete

PSD disclosed:

31 Aug 2016

Translated version of this PSD: Arabic

Project Description

The project consists of a loan to National Bank of Kuwait-Egypt ("NBKE" or "NBK-Egypt") for up to USD 40 million under Egypt Sustainable Energy Financing Facility Framework ("EgyptSEFF"), out of which up USD 20 million is expected to be co-financed by Agence Francaise de Developpement ("AFD") under the same conditions. The project has been developed under the EBRD Green Economy Transition ("GET") approach to scale up green financing.


EgyptSEFF is a comprehensive financing facility programme in the amount of up to EUR 140 million for sustainable energy investments. The funds will be made available to Participating Financial Institutions ("PFIs") in Egypt for on-lending to eligible private sector sub-borrowers for sustainable energy investments. The facility will promote penetration of energy efficient ("EE") and renewable energy ("RE") technologies, appliances and equipment in Egypt through stimulating demand and raising awareness of the benefits of investments in such technologies.

Project Objectives

The operation will enable NBKE to support on-lending to private sub-borrowers for EE and RE projects, which are of particular relevance in the context of high energy intensity of the Egyptian economy. It is expected to be the first project under EgyptSEFF and follows a pilot project with 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 NBKE for financing energy efficiency and renewable energy projects. This will be achieved by dedicated technical assistance, providing training to loan officers and helping NBKE with product design and
the establishment of the necessary procedures, tools and structures for financing energy efficiency improvements.

The Client

NATIONAL BANK OF KUWAIT - EGYPT SAE
Re-branded as NBK-Egypt in 2014, Al Watany Bank of Egypt was founded in 1980 by several Egyptian businessmen. The bank was acquired in 2007 by National Bank of Kuwait. NBKE is the 10th largest Egyptian bank by asset size and the sixth largest private bank. The bank has a market share of approximately 1.5% by assets at the end of 2015. It provides a wide range of corporate, retail and investment banking services in Egypt through its 41 branches. The bank is listed on the Cairo Stock Exchange. As of H12016, National Bank of Kuwait owns approximately 95%.

EBRD Finance

USD 40,000,000.00
Senior unsecured loan of up to USD 40,000,000, out of which USD 20,000,000 is expected to be cofinanced by AFD.

Project Cost

USD 40,000,000.00

Environmental Impact

Categorised FI. NBKE will be required to continue to comply with the EBRD's Performance Requirements ("PR") 2, 4 and 9. All projects under the Sustainable Energy Financing Facility ("SEFF") will be required to comply with the national requirements for environment, health and safety, and labour standards as well as the environmental and social ("E&S") eligibility criteria for EE and RE projects. This will be confirmed to PFIs by a Project Consultant who will be hired by the EBRD to cover this issue. NBKE has submitted their Annual Environmental and Social report for 2015 which was satisfactory to the EBRD. NBKE will be required to continue to provide annual reporting on compliance with the PRs and EBRD's E&S requirements.

Technical Cooperation

NBKE will benefit from the support of the grant resources from the European Union Neighbourhood Investment Facility and expected funds from EBRD Shareholder Special Fund provided under the EgyptSEFF framework. Donor funds will support a comprehensive technical assistance programme to provide i) implementation support NBKE and its customers, and ii) verification of the outcome of completed projects, as well as investment incentives to NBKE and end borrowers.

Company Contact

Karim Kamal - General Manager, Head of Global Relationship
karim.kamal@nbk.com.eg
Direct: + (202)2614 9374
www.nbk.com.eg
NBK-Egypt, Head Office Plot No. 155 City Center, First Sector 5th Settlement, New Cairo, Egypt

 

Business opportunities

For business opportunities or procurement, contact the client company.

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