Egypt’s AAIB sign EBRD, AFD $30 mln green loan deals
Egypt’s Arab African International Bank (AAIB) signed on Tuesday loan agreements totalling $30 million with the European Bank for Reconstruction and Development (EBRD) and France’s state development agency AFD.
The agreements were signed at the AAIB’s headquarters in Cairo by Sherif Elwy, AAIB’s vice chairman and managing director; Jürgen Rigterink, first vice president and head of client services group at EBRD; and Fabio Grazi, AFD’s Country Director for Egypt.
The agreements are part of the EBRD’s efforts to support improvements in the energy efficiency of Egyptian private sector businesses, by providing a loan of $15 million to AAIB.
A further $15 million is provided by AFD aimed to increase investment in the green economy in Egypt.
Loans will cover investments in Egypt’s green technologies, such as thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems. Businesses can identify typical green technologies through the Technology Selector. The loans are complemented by EU funds to help companies identify the most efficient equipment or technologies and verify their use once they are installed, EBRD said in a statement.
In a further step, EBRD is supporting the import and export of green technologies under its Trade Facilitation Programme. Through this programme, the European bank provides guarantees to international confirming banks, taking the political and commercial payment risk of international trade transactions undertaken by banks in the economies where it invests.
The funding is provided under the Egypt Sustainable Energy Financing Facility that supports sustainable energy projects via local partner banks. The programme is contributing towards building a green economy in accordance with the EBRD’s Green Economy Transition approach.
The agreements are in line with AAIB’s strategy to expand in supporting and financing renewable projects and small and medium-sized enterprises with the aim of building a green economy in Egypt, said Sherif Elwy – vice chairman and managing director.
They will provide the necessary financing for sustainable projects in Egypt, Elwy added.