QNB AlAhli - GEFF Egypt, GCF GEFF, Value Chain

Location:

Egypt

Project number:

50985

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

24 Jul 2019

Status:

Board Approved

PSD disclosed:

15 May 2019

Translated version of this PSD: Arabic

Project Description

Provision of a financing package of up to USD 70 million to QNB AlAhli Bank SAE.

The facility will comprise:

      i.       a senior loan of up to USD 20 million under the Egypt Green Energy Financing Facility ("EgyptGEFF");

    ii.        a senior loan of up to USD 20 million under the regional GCF GEFF, of which up to USD 5 million is expected to be co-financed by the Green Climate Fund under the same conditions;

   iii.        a senior loan of up to USD 30 million value chain financing composed of (i) a loan under the Green Value Chain  framework, of which up to USD 7.5 million is expected to be co-financed by Green Climate Fund under the same conditions, and/or (ii) a loan for on-lending to private small and medium enterprises.

Project Objectives

The EBRD loan will enable QNB AlAhli (i) to support on-lending to private sub-borrowers for green, Energy Efficiency (EE) and Renewable Energy (RE) projects, which are of particular relevance in the context of high energy intensity of the Egyptian economy, and (ii) to support high performance technologies and services supporting a green economy and boosting the competitiveness of Small and Medium Enterprises (SMEs) part of a value chain.

Transition Impact

The loan under GEFF will enable QNB AlAhli i) to provide funding to Egyptian private eligible beneficiaries to finance green, small RE and EE projects in the private sector and ii) to finance its excess pipeline under its first Egypt Sustainable Energy Financing Facility.

The value chain financing will enable QNB AlAhli to support high performance technologies and services supporting a green economy and boost the competitiveness of SMEs as part of a value chain.

Client Information

QATAR NATIONAL BANK 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

Up to USD 57.5 million

Senior unsecured loan of up to USD 70 million, out of which up to USD 12.5 million is expected to be co-financed by GCF.

Total Project Cost

USD 20,000,000.00

Up to USD 70 million to be provided in USD

Environmental and Social Summary

GEFF and GVC lines

Category FI (2014 ESP). QNB AlAhli is an existing client and will be required to continue to comply with PRs 2, 4 and 9 apply the EBRD's E&S Risk Management Procedures for Corporate and SME loans and submit annual environmental and social reports to the Bank. All projects under the Green Economy Financing Facility (GEFF) 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.

FIF SME line

Category FI (2014 ESP). QNB AlAhli is an existing client and will be required to continue to comply with PRs 2, 4 and 9 apply the EBRD's E&S Risk Management Procedures for Corporate and SME loans and submit annual environmental and social reports to the Bank. Sub-borrowers financed through this loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.

Technical Cooperation

QNB AlAhli is expected to benefit from the support of the grant resources from the EBRD Shareholder Special Fund ("SSF"). Donor funds will support a comprehensive technical assistance programme to provide implementation support to QNB AlAhli and its customers, and ii) verification of the outcome of completed projects. Grants are expected to provide investment incentives to QNB AlAhli and end borrowers.

Company Contact Information

Sally HAMDALLA
Sally.HAMDALLA@QNBALAHLI.COM
+20227707321
+20 227707799
www.qnbalahli.com
QNB ALAHLI Dar Champollion, 5 Champollion st. down town P.O.Box 2664, Cairo Egypt

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