Luxembourg and Cairo, August 05, 2020 – The Green for Growth Fund announced today that it has provided a USD 15 million top-up loan to Banque du Caire in Egypt to support small and medium enterprises and corporates in financing energy efficiency (EE) and resource efficiency (REff) measures. The facility aims to bolster the bank’s lending operations during the global pandemic, and ensure businesses continue to have access to finance for green measures.
One of Egypt’s largest lenders, Banque du Caire has been a strategic GGF partner since 2017. The bank adopts an integrated business strategy for credit activities with a focus on financing a wide array of economic sectors, including the energy sector. The new investment will mainly be used for loans to business clients to finance EE and REff measures, such as replacing small-scale machinery and upgrading industrial equipment. The bank also plans to develop its agriculture lending capacities, including launching green loan products for the agricultural sector. The investment, once fully utilized, is estimated to result in 61,350 MWh of primary energy savings per year and reduce 12,340 tons of CO2 emissions annually.
GGF Chairman Olaf Zymelka stated: “We are delighted to continue our successful partnership with Banque du Caire, an institution committed to promoting green and sustainable finance. The global pandemic has created a number of economic challenges, and we remain resolute in joining forces with our partners so that together we can continue providing financing to mitigate climate change and promote sustainable economic growth.”
Tarek Fayed, Chairman, Banque du Caire, said: “We are glad to strengthen our partnership with GGF in terms of green finance initiatives. The new partnership derives its strength from a firm belief in the importance of supporting national plans to achieve sustainable development and Egypt Vision 2030. The bank strives to expand green financing for vital sectors, to reduce environmental impact, combat climate change, and improve natural resource efficiency, aiming at supporting the green economy transition.”
ABOUT THE GGF
The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions, and improve resource efficiency in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. The fund provides such financing directly to renewable energy projects, corporates and municipalities or indirectly via selected financial institutions. The GGF’s Technical Assistance Facility maximizes the fund’s investment impact through support for capacity building at local financial institutions and partners.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Energy & Water GmbH, Frankfurt am Main acts as the technical advisor.
For more information see www.ggf.lu and follow us on Twitter @GreenGrowthFund
ABOUT BANQUE DU CAIRE
Banque du Caire is renowned in the market for pioneering institutionalized microfinance operations. The bank holds around 25% of the market share in Egypt's banking sector, the bank succeeded in consolidating its leadership through remarkable expansion and growth in financing Small and Medium Enterprises with a recorded growth rate of 220% at the end of December 2019 compared to Dec 2018. The total facilities granted to customers in this segment amounted to EGP 9bn in 2019, growing by 24%.
BdC is one of the biggest partners to MSME with funding of circa EGP 15.8bn. The bank provides necessary funds, whether for individuals or corporates to increase financial inclusion and sustainability, while regularly develops its business plan and strategy to meet different client needs.
Media contact GGF
Manager Marketing & Communications
Phone: +49 (0)69 271 035-171
Media Contact Banque Du Caire
Head of Corporate Communications & Sustainable Development
Phone: +2 02 2264 8868