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IFC Provides up to $50 million to National Bank of Kuwait-Egypt to Boost Financial Inclusion, Improve Energy Efficiency

IFC Provides up to $50 million to National Bank of Kuwait-Egypt to Boost Financial Inclusion, Improve Energy Efficiency

    IFC, a member of the World Bank Group, is providing a loan of up to $50 million to the National Bank of Kuwait-Egypt (NBKE) to boost access to finance for mid-sized businesses and promote sustainable energy financing (SEF) in Egypt.

IFC’s financing will help the bank meet the foreign currency needs of Egypt’s medium-sized enterprises, a key pillar of economic growth and job creation. It will also help NBKE introduce Egypt’s first SEF credit line to help clients reduce energy costs and consumption and increase competitiveness.

IFC is also providing a trade finance facility under its global trade finance program (GTFP) to support NBKE’s trade operations. IFC’s guarantees will help NBKE deliver trade finance to its clients in challenging markets where trade lines may be constrained. This will help ensure the continued flow of trade credit into the market at a time when imports and the financing of certain commodities may be critical.

“We are very pleased to extend our cooperation with IFC by adding SEF to our platform as well as expanding our reach in financing medium enterprises,” said Yasser Hassan, Managing Director of NBKE. “We are looking forward to expanding our services to our clients in the area of trade finance through IFC’s GFTP. The National Bank of Kuwait Group remains confident in the Egyptian economy, which offers huge growth opportunities and is a focus of our foreign strategy. Adopting new finance instruments in Egypt will enhance NKB-E’s position and presence in this promising market.”

The loan forms part of the World Bank Group’s new Country Partnership Framework for Egypt for 2015–2020. It is also part of IFC’s strategy in Egypt to help strengthen the country’s private sector and spur job creation, reengage with its banking sector, and increase climate-related investments.

“The financing to NBKE is in line with our strategy in Egypt of increasing access to finance and responding to the increasing energy demands,” said Nada Shousha, IFC Country Manager in Egypt. “It highlights our strong commitment to restoring investor confidence in Egypt and sending a positive signal to domestic and international markets.”

From 2011 to 2015, IFC’s investments in Egypt totalled close to $1.2 billion, including funds mobilized from partners. Those investments covered 18 projects across a host of sectors, including financial markets, infrastructure, oil and gas, agribusiness, manufacturing, and health care.