Regional TFP: Bank of Alexandria

Location:

Egypt

Project number:

48227

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

20 Jul 2016

Status:

Signed

PSD disclosed:

17 Jun 2016

Translated version of this PSD: Arabic

Project Description

A financing package of up to USD 100 million to Bank of Alexandria "AlexBank", an Egyptian bank. The facility will comprise (i) a senior loan for on-lending to private small and medium enterprises (''SMEs'') for up to USD 50 million; and (ii) up to USD 50 million trade finance limit for guarantees and cash advances.

Project Objectives

The EBRD loan will assist AlexBank to develop its SME lending activities and expand access to finance for underserved private SMEs.

The trade finance limit will provide guarantees to international commercial banks (confirming banks) by taking the political and commercial payment risk of transactions undertaken by AlexBank. In addition, it will provide cash loans to fund trade-related advances to local companies exclusively for the purpose of pre-export, post-import and local distribution of imported goods.

Transition Impact

The SME loan will increase the availability of finance to private SMEs allowing this largely underpenetrated segment, to gain access to bank credit.

The trade finance limit with AlexBank will strengthen the development of trade finance in the region promoting trade which contributes to the economic development of Egypt.

Client Information

ALEXBANK
AlexBank is headquartered in Cairo, Egypt, with over 170 branches distributed across the country. It provides a wide range of corporate, retail and investment banking services in Egypt.

EBRD Finance Summary

Up to USD 50 million trade finance limit for guarantees and cash advances.

Total Project Cost

Total project cost up to USD 100 million including: (i) a senior loan for on-lending to private small and medium enterprises (''SMEs'') for up to USD 50 million; and (ii) up to USD 50 million trade finance limit for guarantees and cash advances.

Environmental and Social Summary

Categorised FI (2014 ESP). AlexBank will be required to comply with EBRD’s Performance Requirements  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

The loan will be supported by technical cooperation to assist AlexBank to enhance their capacity and know-how in SME lending, including by the review of the product range and opportunities to reach out to various target groups, including women-led enterprises.

Company Contact Information

Tamer Seif El Din - Head of Corporate Banking Products Division
+ (202) 2399 2000
https://www.alexbank.com/En
AlexBank-Egypt, Head Office 49 Kasr El Nile Str

Business opportunities

For business opportunities or procurement, contact the client company.

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