EFG Holding secured a $40 million loan from the European Bank for Reconstruction and Development to expand financing for Egyptian micro, small and medium-sized enterprises. The facility has a four-year term. It is the EBRD's first financing extended directly to EFG Holding at holding-company level.
The lender said the funds will pass through eligible subsidiaries of EFG Finance, the group's non-bank financial institution platform. The financing is intended for businesses in rural areas and outside Egypt's principal urban centres.
FUNDING TARGETS UNDERSERVED BUSINESSES
EBRD said the transaction is designed to narrow financing gaps for enterprises that struggle to obtain credit beyond Egypt's largest cities. The lender said it wants to help such businesses invest, innovate and contribute to a more resilient economy.
EFG Holding said the four-year funding will support disciplined growth in its MSME portfolio across customer segments and locations. Its EFG Finance platform includes lending, leasing, factoring, consumer finance, mortgage finance and insurance businesses.
DIRECT PARTNERSHIP BROADENS EFG'S FUNDING BASE
EBRD has previously provided facilities to EFG subsidiaries including Bank NXT, Tanmeyah and Valu. The new facility adds a direct relationship with the listed holding company, with funds still distributed through eligible operating subsidiaries.
The agreement, announced on 22 September, was signed at EFG Hermes' 12th Annual Investor London Conference.