The IFC, a member of the World Bank Group, provided a loan of up to $50m to the National Bank of Kuwait-Egypt (NBK-Egypt) to boost access to finance for medium-sized businesses and promote sustainable energy financing (SEF) in Egypt.
IFC’s financing will help the bank meet the foreign currency requirements of Egypt’s medium-sized enterprises. It will also help NBK-Egypt to introduce Egypt’s first SEF credit line to help clients reduce energy costs and consumption, and increase competitiveness.
IFC is also providing a trade finance facility under its Global Trade Finance Program (GTFP) to support NBK-Egypt’s trade operations. IFC’s guarantees will help NBK-Egypt deliver trade finance to its clients in challenging markets where trade lines may be constrained. This will help ensure the continued flow of trade credit into the market at a time when imports and the financing of certain commodities may be critical.
The loan forms part of the World Bank Group’s new Country Partnership Framework for Egypt for 2015 to 2020. It is also part of IFC’s strategy in Egypt to help strengthen the country’s private sector.
“The financing to NBKE is in line with our strategy in Egypt to increase access to finance and respond to the increasing energy demands,” said Nada Shousha, IFC Country Manager in Egypt. “It highlights our strong commitment to restoring investor confidence in Egypt and sending a positive signal to domestic and international markets.”
From 2011 to 2015, IFC’s investments in Egypt totalled close to $1.2bn, including funds mobilised from partners. Those investments covered 18 projects across a whole host of sectors, including financial markets, infrastructure, oil and gas, agribusiness, manufacturing, and healthcare.