EFG Holding said on Tuesday it had secured a $40m four-year term loan from the European Bank for Reconstruction and Development to support the expansion of financing for micro, small and medium-sized enterprises in Egypt.
EFG Holding, a financial institution with a universal bank in Egypt and the leading investment bank in the Middle East and North Africa, said the initiative was designed to help businesses invest, scale, create jobs and contribute to more inclusive and sustainable economic growth across Egypt.
The company said it had maintained a longstanding relationship with the EBRD, which has previously extended facilities to several of the group’s subsidiaries, including Bank NXT, Tanmeyah and Valu. The transaction marks the first facility extended directly to EFG Holding at the holding-company level and, accordingly, the first direct financing partnership between the EBRD and EFG Holding.
Mohamed AbdelKhabir, Group Chief Finance and Operations Officer of EFG Holding, said: “This facility represents an important step in expanding EFG Holding’s role in supporting Egypt’s MSME sector. Building on our longstanding relationship with EBRD, which has supported several of our subsidiaries over the years, this transaction opens a new chapter in our partnership as the first facility extended directly to EFG Holding. The four-year tenor provides stable, medium-term funding to support the disciplined growth of our MSME portfolio, enabling our eligible NBFI subsidiaries to expand their activities across different customer segments and geographies.”
Hesham Elbosaty, Group Treasurer at EFG Holding, said: “This transaction is a valuable addition to EFG Holding’s funding base and supports our strategy to diversify our sources of capital. EBRD’s decision to extend successive facilities across the Group, and now to the holding company itself, is a testament to the trust it places in EFG Holding and a strong signal of the Group’s financial strength and institutional credibility.”
Francis Malige, EBRD Managing Director for Financial Institutions, said: “Expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth. Through this transaction, we are deepening our partnership with EFG Holding to ensure more local private businesses, especially those outside major cities, gain the resources they need to invest, innovate and ultimately contribute to a more resilient economy.”
The agreement was signed on the sidelines of EFG Hermes’ 12th Annual London Investor Conference, which brings together global institutional investors, listed companies and capital-market participants to discuss emerging opportunities across the MENA region.
