GGF fund provides first tier II capital in Egypt to Banque du Cairo
Banque du Cairo has secured a $30 million loan from the Green for Growth Fund (GGF) to strengthen the bank’s capital base.
The loan also aims to support the Egyptian bank’s lending activities, particularly green finance, and funding of renewable energy, energy efficiency and resource efficiency projects.
The bank aims to expand green financing for vital sectors, “to reduce environmental impact, combat climate change, and improve natural resource efficiency, aiming at supporting the green economy transition.” said chairman Tarek Fayed.
“The new investment will be valuable in strengthening our capital base to support our growth plans for expanding lending opportunities, achieving sustainable development and to align with Egypt’s 2030 Business Vision.”
This is GGF’s first Tier II capital investment in Egypt, provided to “its long-standing partner Banque du Caire.”
“The new transaction marks the fund’s first subordinated loan to a bank operating in Egypt after GGF received its licence from the Central Bank of Egypt.” GGF said in a statement.
“The fund aims to enhance the bank’s capital base and the expansion of its lending plans to various economic sectors in Egypt. The collaboration between GGF and BDC will contribute to promoting sustainable economic growth in Egypt and alleviating the challenges of climate change.”
GGF’s chairman Olaf Zymelka said: “Banque du Caire has been a valuable partner to GGF since 2017. That is why we are particularly proud of this new milestone that will bolster our efforts to increase the provision of well-structured and purpose-driven EE, REff and RE financing in the country.”
“Through collaborations with valuable partners like Banque du Caire, we can have a considerable impact on the environment in Egypt.” Zymelka added.
