EFG Holding Secures $40 Million Financing from EBRD to Support Small and Medium Enterprises in Egypt

• The Egyptian financial services group EFG Holding has secured a $40 million loan for four years from the European Bank for Reconstruction and Development (EBRD) to expand financing for micro, small, and medium enterprises (MSMEs) in Egypt.
• This financing represents the first facility provided by EBRD directly to EFG Holding at the holding company level, following previous facilities provided to several subsidiaries of the group, including Bank NXT, Tanmeyah, and Valu.
• The funding will be channeled through eligible subsidiaries engaged in financing micro, small, and medium enterprises, to support liquidity and working capital needs, with a focus on expanding access to finance in underserved areas. The loan has a four-year term with a one-year grace period.
• EFG Holding stated that the financing will help its eligible non-banking companies expand their portfolios for financing small and medium enterprises across different customer segments and geographical areas, in addition to diversifying the group's funding sources.

Press Release:

EFG Holding Group, the financial institution that owns a universal bank in Egypt and the leading investment bank in the Middle East and North Africa, announced today that it has secured a four-year loan of $40 million from the European Bank for Reconstruction and Development (EBRD) to support the expansion of financing for micro, small, and medium enterprises (MSMEs). This financing enables companies to expand their investments and activities, creating new job opportunities, thereby promoting more inclusive and sustainable economic growth in Egypt.

EFG Holding Group has a longstanding relationship with the EBRD, which has previously financed several subsidiaries of the group, including Bank NXT, Tanmeyah, and Valu. This operation marks a milestone in the journey of this partnership, being the first direct financing from the EBRD to EFG Holding Group at the holding company level.

Mohamed Abd El-Khabir, Chief Financial Officer and Operations Head of EFG Holding Group, stated: "This financing represents an important step in enhancing the group's role in supporting the micro, small, and medium enterprises sector in Egypt. Based on our longstanding relationship with the EBRD, which has supported several of our subsidiaries over the years, this deal represents a new chapter in our partnership, being the first financing provided directly to EFG Holding Group. The four-year financing term provides stable, medium-term funding to support the growth of our portfolio in the micro, small, and medium enterprises sector, enabling our eligible non-banking subsidiaries to expand their activities to meet the needs of various customer segments and markets."

Hesham El-Basaty, Head of Financing and Investment at EFG Holding Group, added: "This financing is a valuable addition to the group's funding base, supporting our strategy to diversify capital sources. The EBRD's decision to continue providing financing to the group's subsidiaries, reaching the holding company itself, reflects the level of confidence the bank has in the group and serves as a strong indicator of the group's financial strength and institutional credibility."

Francis Malige, Executive Director of Financial Institutions at the EBRD, stated: "Expanding economic opportunities for micro, small, and medium enterprises is a key element for achieving long-term economic growth in Egypt. Through this loan, we deepen our partnership with EFG Holding Group to ensure that more local private companies, especially those located outside major cities, have access to the resources they need to invest and innovate, ultimately contributing to building a more resilient economy."

The agreement was signed on the sidelines of the 12th annual EFG Hermes investment conference in London, which brings together global institutional investors, listed companies, and capital market participants to explore promising opportunities in the Middle East and North Africa.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.