Banque Misr secures $100mln green finance from EBRD

ArabFinance: The European Bank for Reconstruction and Development (EBRD) could soon sign off on a $100 million facility to state-owned Banque Misr to finance local Small and Medium Enterprises (SMEs) working on green projects, according to a statement by the EBRD.

Banque Misr will allocate the new green finance to support small businesses in manufacturing as well as the retail, transport and agricultural sectors that use climate change mitigation and adaptation technologies.

The transition impact of the project will draw on the provision of funding and technical assistance to financial intermediaries to finance high-performing climate change mitigation and adaptation technologies and solutions.

This will promote the transition to environmentally sustainable, low carbon and climate-resilient economies.

The project offers a combination of longer-term financing and technical expertise into a package that promotes targeted investment in sustainable energy and climate change mitigation, in the highly diversified private sector in Egypt.

The EBRD is scheduled to give its final approval for the unsecured financing on December 15^th.

The EBRD has been particularly active in SME lending for green projects, with its green economy financing facility (GEFF), which has been up and running in Egypt since 2017 and has channeled some EUR 140 million to green investments by private companies through local banks.

An EUR 150 million extension, financing business in agriculture, construction and manufacturing, was announced in November 2020.