EBRD provide $15M loan to AAIB

CAIRO - 6 November 2019: The European Bank for Reconstruction and Development provided the Arab African International Bank with a $15-million loan in light of its support to improvements in the energy efficiency of the Egyptian private sector businesses.

According to the EBRD, the loan is co-financed by $15 million from the Agence Française de Développement (AFD), and will increase the investment in the green economy in Egypt.

“Loans will cover investments in green technologies, such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems. Businesses can identify typical green technologies through the Technology Selector,” the bank clarified.

According to EBRD, the loans are complemented by EU funds to help companies identify the most efficient equipment or technologies and verify their use once they are installed.

In October, EBRD reviewed the provision of two senior loans to the National Bank of Egypt (NBE) with a total amount of $50 million. EBRD explained that it revised the provision of a senior loan to NBE of up to $20 million on-lending to local, private, high-growth Small and Medium Enterprises (SMEs), which commit to strengthening their capacity to train and retain skilled labor, in particular of youth.

The second loan is a senior unsecured loan to NBE worth $30 million to be provided by the EBRD to the program, Egypt Youth in Business (EgyptYiB). “The proceeds of the loan will be on-lent to local private enterprises that are led or owned by youth,” EBRD noted.

Since the start of EBRD operations in Egypt in 2012, the bank has invested over €5.3 billion in 99 projects in the country. In 2018, Egypt was the largest EBRD country of operations in terms of new commitments.