Emirates NBD Egypt Subordinated Loan

Location:

Egypt

Project number:

47752

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

07 Sep 2016

Status:

Disbursing

PSD disclosed:

03 Aug 2016

Translated version of this PSD: Arabic

Project Description

The EBRD is considering a financing package of up to USD 125 million to Emirates NBD's Egyptian subsidiary. The facility will comprise a subordinated loan to support the planned growth of the bank and the financing of SMEs in the local market. The loan will be disbursed in two tranches of USD 50 million and USD 75 million respectively. The second tranche is uncommitted.

The subordinated debt will be subject to regulatory approval by the Central Bank of Egypt.

Project Objectives

The subordinated debt will strengthen the capital base of Emirates NBD Egypt to support planned growth and the financing of SMEs in the local market.

Transition Impact

The subordinated debt will strengthen the capital base of Emirates NBD Egypt, a medium-sized, international commercial bank in a sector that remains dominated by state-owned banks (approximately 40% market share). The financing will also increase the availability of bank finance to private SMEs, an underserved market segment The project will be the first example of a subordinated loan provided by a third party on the Egyptian market and as such will introduce a new asset-class which has been supported by policy dialogue with the Central Bank of Egypt.

Client Information

EMIRATES NBD S.A.E

Emirates NBD Egypt is the 13th largest Egyptian bank based on total assets with a market share of c. 1.2%.

It provides a wide range of corporate, retail and investment banking services in Egypt through its 63 branches. Its Parent, Emirates NBD, the leading bank in the Gulf Cooperation Council (GCC) region and in the United Arab Emirates, entered the Egyptian market in June 2013 through the acquisition of the BNP Paribas subsidiary in Egypt.

EBRD Finance Summary

USD 125,000,000.00

Total Project Cost

USD 125,000,000.00

Environmental and Social Summary

Categorised FI (2014 ESP). Categorised FI (2014). Emirates NBD Egypt will be required to comply with EBRD's PRs 2, 4 and 9, adopt and implement the EBRD's E&S Risk Management Procedures for Corporate and Small Loans and submit Annual Environmental and Social Reports to the Bank. For the TFP loan the client will be required to apply the EBRD's E&S Procedures for Trade Finance.

Technical Cooperation

None.

Company Contact Information

Ramzi Aissa - Head of Strategy and Planning
ramziai@emiratesnbd.com
+ (202) 2726 5727
http://emiratesnbd.com.eg/egypt-en/index.cfm
Emirates NBD-Egypt, Head Office Plot No. 85 El-Tesseen Street 5th Settlement, New Cairo, Egypt

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