Four Egyptian banks to launch fund for financing SMEs in Q4

The banks are namely NBE, Banque Misr, Banque Du Caire, and Suez Canal Bank

  
Image used for illustrative purpose.

Image used for illustrative purpose.

Getty Images
 

ArabFinance: Four national banks are getting ready to launch a fund for financing small- and medium-sized enterprises (SMEs) in the fourth quarter (Q4) of 2021, Chief Executive Officer of Investments at the National Bank of Egypt (NBE) Ahmed El Saeed told Al Mal Newspaper.

The banks are namely NBE, Banque Misr, Banque Du Caire, and Suez Canal Bank, El Saeed pointed out, noting that the anticipated fund will be managed by Avanz Capital.

The fund will focus on pumping investments into funds specialized in financing emerging SMEs, mainly in the technology sector, he highlighted, noting that a number of banks have showed interest in contributing to the fund’s capital.

In the same vein, sources familiar with the matter have informed Al Mal Newspaper that the fund will be established with EGP 1 billion in seed capital, which is targeted to reach EGP 2 billion over the coming period.

The seed capital of the fund will be financed by local banks, and is expected to attract foreign investments over the coming period, the sources added.

Moreover, Avanz Capital, which operates in London, Washington, and New York, will be managing the fund and will set up a local company with the aim to attract foreign investments in the fund, the sources said.

It is noteworthy that the Chairman of the Financial Regulatory Authority (FRA) Mohamed Omran had recently revealed that an entity submitted a request to the FRA for the establishment of an investment fund with a capital of EGP 1 billion for financing SMEs.

Copyright © 2021 Arab Finance Brokerage Company All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Financial Services