EgyptSEFF - QNB Alahli

Location:

Egypt

Project number:

48794

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

02 Nov 2016

Status:

Repaying

PSD disclosed:

23 Sep 2016

Translated version of this PSD: Arabic

Project Description

The project consists of a loan to QNB Alahli ("QNBAA") for up to USD 40 million under the Egypt Sustainable Energy Financing Facility Framework ("EgyptSEFF"), out of which up USD 20 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 ("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 by stimulating demand and raising awareness of the benefits of investments in such technologies.

Project Objectives

The operation will enable QNB Alahli 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 one of the first projects 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 QNB Alahli for financing energy efficiency and renewable energy projects. This will be achieved by dedicated technical assistance, providing training to loan officers and helping QNB Alahli with product design and the establishment of the necessary procedures, tools and structures for financing energy efficiency improvements.

Client Information

QATAR NATIONAL BANK ALAHLI QNB ALAHLI SAE

QNB Alahli SAE is the fourth largest commercial bank in Egypt. The bank has a market share of 5-8% by assets, loans and deposits.

EBRD Finance Summary

USD 20,000,000.00

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

Total Project Cost

USD 40,000,000.00

Environmental and Social Summary

Categorised FI. QNB Alahli is in compliance with PRs 2 and 4 under existing exposure. E&S risk management training on the EBRD's E&S requirements was provided to QNB Alahli credit risk staff in March 2016. Following the training an Environmental and Social Management Plan was developed for the client to implement in order to achieve compliance with PR9. All projects under the Sustainable Energy Financing Facility ("SEFF") will be required to comply with the national environment, health and safety and labour regulations and standards as well as the E&S eligibility criteria for RE and EE sub-projects. This will be confirmed to QNB Alahli by a Project Consultant who will be hired by the EBRD to cover this issue. QNB Alahli will be required to confirm compliance with the E&S requirements as well as the PRs by providing Annual Environmental and Social reports to the Bank.

Technical Cooperation

QNB Alahli 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 QNB Alahli and its customers, and ii) verification of the outcome of completed projects, as well as investment incentives to QNB Alahli and end borrowers.

Company Contact Information

Ms. Sally Hamdalla, Head of Multilateral Relationships & Funding
Sally.HAMDALLA@QNBALAHLI.COM
(+202) 27707321
qnbalahli.com
P.O. Box 2664, Cairo, Egypt

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

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