The International Finance Corporation (IFC) may extend $260 million to state-owned Banque Misr for on-lending to local MSMEs and women-owned SMEs.
According to the lender’s website, the IFC will fund $ 216.7 M of the five-year loan, while the rest will come from its co-lending program. The lender will sign off on the loan on 30 June.
Aside from funding, the IFC will also provide support with the development and implementation of an Environmental and Social Management System to help it manage ESG-related risks.
Furthermore, the bank is getting a USD 100 M facility from the European Bank for Reconstruction and Development for on-lending to local MSMEs. The EBRD is expected to sign off on the facility on Wednesday. “The loan offers a combination of longer-term financing than what is available in the market and promotes financing for MSMEs in Egypt,” the EBRD said. This would mark the second EBRD on-lending loan Banque Misr has received in as many years, after last year receiving USD 100 M to finance local SMEs working on green projects.
