Ahli United Bank – Egypt (AUB), one of Egypt’s prominent financial institutions, received a financing package of $82m from the European Bank for Reconstruction and Development (EBRD), the European Union (EU), and the Green Climate Fund (GCF).
This has been rendered as part of AUB – Egypt’s expansion strategy in the Egyptian market; which will boost its funding activities, support the growth of GDP and further provide the required financing for the SMEs as well.
The financing package provided to AUBE consists of a $30m credit line for lending to small and medium-sized enterprises (SMEs), a $10m value chain loan under the EU-Funded Trade and Competitiveness Program, and a $12m green value chain loan supported by the GCF and the EU, as well as a $30m trade facility under the EBRD Trade Facilitation Programme (TFP).
“We are pleased to collaborate with EBRD and GCF in support of the key business sectors that are vitally important in the domestic market, which is consistent with the bank’s strategy and the national economic development plan,” said Hala Sadek, CEO and Board Member, AUB – Egypt.
“AUB – Egypt aims to enhance SMEs’ access to credit lines, taking into account their evolving role in promoting the Egyptian economy and creating job opportunities even with relatively small investments. Additionally, AUB – Egypt plans to extend its support to the SMEs located in remote areas outside Greater Cairo and Alexandria,” stated Sadek.
She also pointed out that the financing package would support SMEs operating in diverse industries especially agribusiness, manufacturing and services, logistics, information and communication technologies, taking cognizance of the competitiveness of these sectors. Meanwhile, the program will enable small businesses to invest in advanced technologies and solutions which result in climate change migration and adaptation.
AUB, the largest bank in Bahrain, holds a 95.7 % stake in AUB – Egypt. AUB’s financial results for the first nine months of 2021 showed an exceptional growth rate, reporting a net profit of $450.6m and a return on average equity of 13.7%.