The International Finance Corporation (IFC), the private-sector arm of the World Bank Group, is targeting a new financing package to support Banque Misr, aimed at expanding green finance, climate assets, and lending to small and medium-sized enterprises (SMEs), according to disclosures published on IFC’s official website.
The proposed financing consists of two main components, with the first being a sustainability-linked senior loan of up to $150 million with a three-year tenor. This investment forms part of a broader financing package totaling $220 million, which has already received approval from IFC’s Board of Directors.
IFC noted that any additional funding or disbursements will remain subject to further assessments and internal approvals.
Focus on Climate Assets, Green Buildings, and SMEs
According to IFC’s disclosures, the financing is designed to support Banque Misr’s lending activities in environmentally sustainable and inclusive sectors.
- 50% of the financing will be allocated to climate-related assets, reinforcing Egypt’s transition toward a low-carbon economy
- 30% will be directed toward green buildings owned by Banque Misr, supporting energy efficiency and sustainable infrastructure
The remaining 50% of the funds will be dedicated to micro, small, and medium-sized enterprises (MSMEs), a critical engine of economic growth in Egypt. Notably, 20% of this portion will be earmarked for women-owned businesses, underscoring IFC’s focus on gender-inclusive finance.
Support Through GTFP
The second component of the financing package consists of a non-binding trade finance facility under IFC’s Global Trade Finance Program (GTFP). The facility aims to enhance Banque Misr’s ability to support international and regional trade flows, particularly for SMEs operating in strategic sectors.
IFC also confirmed that the proposed financing benefits from its “Egypt 30 by 30” program, an initiative designed to accelerate private-sector investment, promote sustainable development, and expand access to finance across Egypt.
IFC’s Growing Footprint in Egypt’s Financial Sector
In previous remarks made in October, Johan Kunt, IFC’s Director for Financial Institutions Group in Africa, stated that the corporation’s investment portfolio in Egypt’s financial sector stands at approximately $1.5 billion. He projected that this figure could exceed $2 billion by the end of the 2025/2026 fiscal year, reflecting IFC’s expanding role in the Egyptian market.
Kunt also highlighted the strong gender dimension of IFC’s activities, noting that women in Egypt accounted for 60% of the financing provided by IFC during the previous year.
Catalyzing Sustainable and Inclusive Finance
The proposed Banque Misr financing reinforces IFC’s strategic priorities in climate finance, SME development, and women’s economic empowerment, while supporting Egypt’s broader goals for sustainable growth and private-sector-led development.
If finalized, the deal would further position Banque Misr as a key partner in advancing green banking and inclusive finance across the Egyptian economy.
