Egypt-based EFG Holding has secured a $40 million four-year loan from the European Bank for Reconstruction and Development (EBRD) to expand access to financing for micro, small and medium-sized enterprises (MSMEs) across Egypt.
The financing marks the first EBRD facility extended directly to EFG Holding at the holding-company level, opening a new chapter in the longstanding relationship between the two institutions.
The funds will be channelled through eligible subsidiaries of EFG Finance, the group’s non-bank financial institution platform, to support MSMEs across different customer segments and geographies.
A particular focus will be placed on businesses operating in rural areas and outside Egypt’s major urban centres, where access to finance remains more limited. The funding is expected to provide businesses with additional liquidity and working capital to invest, expand operations and support employment.
The four-year senior unsecured loan also includes a one-year grace period, according to EBRD project information.
“Expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth,” said Francis Malige, EBRD Managing Director for Financial Institutions, adding that the transaction aims to help more private businesses, particularly those outside major cities, access resources to invest and innovate.
Karim Awad, Group CEO of EFG Holding, said the company is continuing to broaden its collaboration with EBRD and expand the financing available to MSMEs through its NBFI platform.
The transaction builds on an existing relationship between EBRD and EFG Holding. The bank has previously provided financing facilities to several companies within the group, including Bank NXT, Tanmeyah and Valu.
The agreement was signed during EFG Hermes’ 12th Annual Investor London Conference, which brought together institutional investors, listed companies and capital-market participants to discuss investment opportunities across the MENA region.
Since beginning operations in Egypt in 2012, EBRD has invested nearly €15.4 billion across 234 projects in the country.
