The OPEC Fund for International Development announced on Thursday a $200 million loan agreement that will provide funding for infrastructure projects in Egypt.
The financing deal was signed by OPEC Fund, Asian Infrastructure Investment Bank (AIIB) and National Bank of Egypt (NBE). It includes a $150 million loan from AIIB and another $50 million from the OPEC Fund.
As part of the agreement, NBE will deploy the funds to support hard and soft infrastructure sub-projects in Egypt.
“The OPEC Fund’s loan will be used for on-lending to the private sector in priority industries that include education, energy (particularly renewables), health and transportation. In addition, NBE will on-lend to small and medium-sized enterprises,” the statement said.
NBE is Egypt’s oldest commercial bank that provides corporate and investment banking services. It caters to SMEs and capital markets, as well as funds key economic sectors, including energy, electricity, gas, telecommunications, air transport and tourism.
“Egypt significant infrastructure needs can be met by increasing investments in both public and private sectors, and banks such as NBE will play a critical role in deploying fund where it is most needed,” said Tareq AlNassar, OPEC Fund’s assistant director general for private sector and trade finance operations.
The OPEC Fund has supported development projects in Egypt since it was established in 1976. Since then, more than $1.3 billion has been committed across all the OPEC Fund’s financing windows for projects in various economic sectors.
(Writing by Cleofe Maceda; editing by Seban Scaria )
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