SANAD provides first Tier II capital in Egypt to Banque du Caire
The investment will strengthen the Egyptian bank’s capital base by $30 million. Through the transaction, the fund aims to boost the bank’s strong growth plans and ability to provide local businesses, including micro, small, and medium enterprises (MSMEs), agricultural producers, and microfinance institutions, with much-needed liquidity to different client segments in a business environment made difficult by the COVID-19 crisis.
The leading microfinance bank in Egypt, Banque du Caire has been a strategic SANAD partner since 2017, supporting the impact investment fund in its aim to expand access to responsible business financing for MSMEs. The new transaction marks the fund’s first subordinated loan to a bank operating in Egypt after SANAD received its license from the Central Bank of Egypt in July 2020 to provide Tier II capital.
By thus bolstering the financial infrastructure upon which entrepreneurs rely, SANAD and Banque du Caire aim to support the ability of business owners across economic sectors to access the resources they need to withstand the economic headwinds brought about by the coronavirus pandemic.
SANAD Board Chairperson Dr. Daniela Beckmann said: “We are proud of this milestone with Banque du Caire. This collaboration has proven very fruitful for SANAD’s efforts to promote income generation and employment in Egypt, the region’s most populous country, by expanding financial inclusion, especially to MSMEs – the backbone of the economy.”
“Now, we are glad to play a role in strengthening this valuable partner’s ability to continue serving this important segment, especially now when liquidity is essential to the survival of many smaller businesses.”
Tarek Fayed, chairman of Banque du Caire, said: “Banque du Caire is highly committed to providing financing solutions for Egypt’s local businesses. This includes boosting the capacity and reach of microfinance institutions as well as serving MSME clients directly.
“Our partnership with SANAD signals the confidence of international investors in our operations and impact. The new investment will be valuable in strengthening our capital base to support our growth plans for expanding lending opportunities to a wide array of economic sectors and client segments, including MSMEs and the agricultural sector.”