EFG Holding has finalized a $40 million loan agreement with the European Bank for Reconstruction and Development (EBRD) to increase financing for micro, small, and medium-sized enterprises (MSMEs) in Egypt.
What is the purpose of the loan?
The four-year term loan aims to provide capital for Egyptian MSMEs. EFG Holding stated the funds will help these businesses scale operations, create jobs, and support economic growth.
How will the funding be used?
EFG Holding plans to use the capital to expand its MSME portfolio. The company intends to allow its non-banking financial institution subsidiaries to increase their activities across various customer segments and geographic regions in Egypt.
Is this a new partnership?
No. EFG Holding and the EBRD have an existing relationship. The bank has previously provided facilities to EFG subsidiaries, including Bank NXT, Tanmeyah, and Valu.
What makes this transaction unique?
This is the first time the EBRD has extended a facility directly to EFG Holding at the holding-company level.
Where was the agreement signed?
The deal was finalized during the 12th Annual London Investor Conference, an event hosted by EFG Hermes.
The financing is intended to diversify EFG Holding’s capital sources while supporting private sector development in Egypt, particularly outside major urban centers.