The European Bank for Reconstruction and Development and British International Investment (BII) are providing a US$ 100 million subordinated loan to Banque du Caire (BDC), one of Egypt’s largest banks, strengthening BDC’s Tier II capital.
This facility will support the growth plans of Banque du Caire and optimize its capital structure.
Providing long-term, Tier II funding will accelerate BDC’s ambitious growth plans, increasing its capital and guaranteeing the availability of much-needed funds to enhance BDC’s growth within various sectors of the market. With one of Egypt’s largest branch networks (248 branches nationwide), a market-leading position in microfinance, and a strategic push towards digital distribution channels, BDC is well-placed to serve market segments that are critical for advancing financial inclusion in the country.
As part of the cooperation, the EBRD will support BDC in implementing a corporate climate governance action plan (CCGAP), helping to integrate climate change considerations into the bank’s corporate practices, in accordance with the principles of the Task Force on Climate-related Financial Disclosures.
Alongside this support, BII will play an integral role in shaping BDC’s strategy and organizational culture by providing guidance on the management of environmental and social (E&S) risk, aiming to support BDC in managing such risks in its business operations. This will help enhance the bank’s reputation and improve its prospects of accessing more foreign capital to support sustained growth.
Banque du Caire’s Chairman and CEO Tarek Fayed commented: “The bank spares no effort to accelerate the pace of transformation towards a green economy and to achieve Egypt’s 2030 vision. We are proud of the strategic partnership with the EBRD and BII, reflecting the confidence of multilateral financial institutions in Banque du Caire’s vision for the future.”
Egypt is a founding member of the EBRD. Since the start of its operations there in 2012 the Bank has invested more than €10 billion in 163 projects in the country.