EBRD, EU and GCF promote green lending in Egypt

The European Bank for Reconstruction and Development (EBRD), Green Climate Fund (GCF) and European Union (EU) have jointly signed their first financing package with Suez Canal Bank. Worth US$ 50 million (€42.6 million) in total, it will facilitate trade and boost access to finance through green loans to private businesses in Egypt.

The package consists of a US$ 25 million loan under the EBRD’s Green Economy Financing Facility, of which US$ 3.75 million is co-financed by the GCF to help extend on-lending to Egyptian households and private micro, small and medium-sized enterprises that are investing in climate adaptation and mitigation technologies within their business.

The financing will also include an uncommitted US$ 25 million increase to SCB’s Trade Facilitation Programme limit, to be used for guarantees and cash advances. This will improve SCB’s trade finance business volume, support import and export transactions and help expand its correspondent banking services and trade finance product range.

An EU-funded technical cooperation package will support project preparation, implementation and monitoring of the programme. The EU will also provide up to US$ 2.9 million in incentive grants to benefit eligible sub-borrowers who complete projects successfully and to compensate borrowers for the cost of adopting higher-performing technologies.