The loan is EBRD’s latest contribution in Egypt and adds to the cooperation volume between Egypt and the bank which according to Egypt’s Minister of International Cooperation, Rania al-Mashat amounts to €6.5 billion through 115 projects.
The Funds to be used to enhance the resilience of local businesses during the COVID-19 period were provided by EBRD under its Resilience Framework (FR) developed to address the impact of the COVID-19 pandemic on regional economies.
EBRD explained that the financing will help Banque Misr in providing funding to local SMEs and corporates experiencing liquidity challenges either due to decrease in their activity, turnover, and/or profitability.
“The proceeds of the proposed loan will be on-lent to local private small and medium-sized enterprises (SMEs), and to corporates, supporting them in bridging liquidity needs that may arise as a result of the pandemic,” EBRD clarified in a statement.
The European bank further noted that the transition impact of the project will stem from its contribution to the continued functioning of the Egyptian economy.
Last month, Banque Misr raised its stake in CI Capital Holding for Financial Investments from 7.3% to 10.16%, buying 28.643m shares in CI Capital with a total value of US$7.17 million.
The increase makes Banque Misr the largest shareholder in CI Capital’s ownership structure, followed by Global Holding Group with 10.056%, then CIB – Egypt with 7.561%, and Mahmoud El Gamal Charitable Foundation with 5.439%.
Banque Misr was established in 1920 and is the second-largest bank in Egypt with total assets of €54.1 billion (December 2019) and market shares of up to 19 per cent in terms of assets, loans and deposits.