Egypt: AfDB Supports Commercial Int’l Bank with $148m to Prop Up SMEs, Trade

The financial package to CIB comes amid a shortage of foreign currency in Egypt due to complex endogenous and exogenous macro-economic and geopolitical factors.

Finance

• Programme name: Financial package to Commercial International Bank of Egypt (CIB)
• Instruments and amounts:

-  $10 million Line of credit with a tenor of 10 years,

-  $90 million subordinated loan with a tenor of 10 years,

-  $32 million trade finance line of credit with a tenor of 3.5 years

-  $16 million trade finance line of credit from the Africa Growing Together Fund (AGTF) with a tenor of 3.5 years.

Background

The financial package to CIB comes amid a shortage of foreign currency in Egypt due to complex endogenous and exogenous macro-economic and geopolitical factors, including persistent supply bottlenecks due to the COVID-19 pandemic and the Russia-Ukraine conflict.

The financial package will enable CIB to meet the foreign currency needs of its clients in various sectors of the Egyptian economy.

Specific objectives of the programme

The financial package will:

• Provide CIB with long-term resources for onward lending to businesses.
• Strengthen CIB’s capital position.
• Enable CIB to meet the trade finance needs of its clients.

Beneficiaries

The primary beneficiaries of the financial package will be small and medium-sized enterprises (SMEs) and corporates operating in key sectors of the Egyptian economy.

Expected results

This funding will contribute to mobilising significant resources for key economic sectors in Egypt, ultimately enhancing productive capacity and stimulating growth. This will increase economic output, improve the country’s competitiveness, generate fiscal and export revenues and create much-needed employment opportunities, particularly for women.

November 30, 2023