The OPEC Fund for International Development and Asian Infrastructure Investment Bank (AIIB) have signed a US$200 million loan agreement with the National Bank of Egypt (NBE), Egypt\u2019s largest commercial bank, to support the bank\u2019s on-lending to hard and soft infrastructure sub-projects.<\/p>\n
The financing package includes a US$150 million loan from AIIB and a US$50 million loan from the OPEC Fund, and will help bridge the infrastructure funding gap in Egypt, leveraging NBE\u2019s broad network in the country.<\/p>\n
The OPEC Fund\u2019s 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 (SMEs).<\/p>\n
Tareq Alnassar, OPEC Fund Assistant Director General- Private Sector and Trade Finance Operations, signed the agreement on behalf of the OPEC Fund in Abu Dhabi. Alnassar said: \u201cEgypt\u2019s 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 funding where it is most needed. We are delighted to support NBE\u2019s efforts for on-lending to the private sector, and pleased to cooperate with AIIB in a partner country that is important to our two institutions. Our loan aligns well with several Sustainable Development Goals (SDGs), such as SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and Infrastructure).\u201d<\/p>\n
\u201cThis is AIIB\u2019s first engagement with an Egyptian bank and the project will help NBE diversify its funding sources for lending to the infrastructure sector,\u201d said AIIB Vice President, Investment Operations (Region 2) Konstantin Limitovskiy.<\/p>\n
\u201cIt is fully aligned with AIIB\u2019s thematic priority to advance sustainable infrastructure and, in partnership with the OPEC Fund, will support the Government of Egypt\u2019s intention to bridge the maturity gap between the demand for longer-term loans and the availability of short-term deposits in the Egyptian financial system.\u201d<\/p>\n
The OPEC Fund has supported development in Egypt since the organization was established in 1976. Since then, more than US$1.3 billion has been committed across all the OPEC Fund\u2019s financing windows for projects in various economic sectors.<\/p>\n
NBE is Egypt\u2019s oldest commercial bank and provides corporate and investment banking services, and traditional banking activities including services to SMEs, capital markets and retail and asset management. NBE also funds key economic sectors including energy, electricity, gas, telecommunications, air transport and tourism.<\/p>\n","protected":false},"excerpt":{"rendered":"
The OPEC Fund for International Development and Asian Infrastructure Investment Bank (AIIB) have signed a US$200 million loan agreement with the National Bank of Egypt (NBE), Egypt\u2019s largest commercial bank, to support the bank\u2019s on-lending to hard and soft infrastructure sub-projects.<\/p>\n","protected":false},"author":4,"featured_media":323766,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-323765","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-development-partners"],"yoast_head":"\n