[ACCI-CAVIE] US$ 25 million loan to National Bank of Kuwait Egypt to fund green energy projects. Projects to support Egyptian small and medium size enterprises and households. EU grants as well as Green Climate Fund co-financing 15 per cent of total loan amount.
The European Bank for Reconstruction and Development (EBRD) is boosting renewable energy and energy efficiency in Egypt with a US$ 25 million loan to the National Bank of Kuwait Egypt (NBKE). Fifteen per cent of the total loan amount is being co-financed by the Green Climate Fund (GCF).
The European Union (EU) will support the financing to NBKE with up to €2,560,000 of EU funds for incentive payments to projects that are successfully implemented and verified. The EU will also provide a comprehensive technical assistance package of up to €6.2 million for all participating financial institutions and their clients, as well as for policy dialogue.
The funds will be on lent to Egyptian small and medium size enterprises (SMEs) and households to finance investments to mitigate the impacts of climate change. The application of new technologies is expected to promote the transition to an environmentally sustainable, low-carbon and climate resilient economy in Egypt.
The GCF and EBRD’s partnership for transformation has seen the GCF support six EBRD programmes to the tune of US$ 830 million, catalysing more than US$ 3.6 billion in total project value. The GCF is the world’s largest climate fund, supporting developing-country efforts to respond to the challenges of climate change.
This loan is being extended under the EBRD’s Green Economy Financing Facility (GEFF), which provides finance and advice to private-sector businesses to support Egypt’s green economy transition. The facility has a financing pool worth €150 million for energy-efficiency and renewable energy investments.
NBKE is an Egyptian joint stock company and a subsidiary of the NBK group. It has been a partner of the EBRD since 2015, when it agreed an SME loan and a trade finance facility, followed in 2016 by an energy-efficiency loan under the Egypt GEFF.
Egypt is a founding member of the EBRD. To date, the Bank has invested €7.7 billion in the country through 132 projects. Promoting the green economy transition in Egypt by supporting efforts to diversify its energy mix and energy-efficiency investments is one of the Bank’s priorities in the country.
By Nibal Zgheib