The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is stepping up its support for Egyptian exporters and importers with a US$ 40 million trade facility to Emirates NBD Egypt under the EBRD’s Trade Facilitation Programme (TFP).
The TFP, launched in 1999, promotes foreign trade to, from and among the Bank’s countries of operations, including Egypt. Through the facility, the EBRD provides guarantees in favour of international commercial banks, covering the commercial payment risk of the transactions undertaken by Emirates NBD Egypt. The EBRD will also offer additional limits and longer tenors for guarantee transactions, which are expected to be used mainly for the import of machinery and equipment.
Sir Suma Chakrabarti, the EBRD President, said: “We are delighted to welcome Emirates NBD Egypt to our Trade Facilitation Programme, which will further support cross-border trade in the country as well as contributing to overall economic growth.”
Giel-Jan M. Van Der Tol, the CEO of Emirates NBD Egypt, said: “The Trade Facility Programme further enriches our partnership with the EBRD which dates back to February 2017 with our flagship agreement – the pioneering US$ 125 million subordinated loan. The TFP agreement will support our trade activities and allow us to boost our contribution to Egypt’s economic reform.”
The TFP currently includes over 100 partner banks in 28 countries where the Bank invests, with a total transaction value of €15 billion, and more than 800 confirming banks worldwide, according to the EBRD.
Egypt is a founding member of the EBRD and has been receiving funding since 2012. To date, the Bank has invested over €3 billion in 66 projects in the country. The EBRD’s areas of investment there include the financial sector, agribusiness, manufacturing and services, as well as infrastructure projects such as power, municipal water and wastewater services, and support for transport services. The Bank has also provided technical assistance to more than 600 small and medium-sized local enterprises.
Emirates NBD Egypt is a fully owned subsidiary of the Emirates NBD Group, the leading bank in the United Arab Emirates. Emirates NBD entered the Egyptian market in 2013 through the purchase of BNP Paribas’ Egyptian operations. Following significant growth, it now has over 2,200 staff, 65 branches and 240 ATMs, and is the largest subsidiary of the Emirates NBD Group outside its home country. Emirates NBD Egypt now aims to become one of the nation’s leading private-sector banks, underpinned by continued gains in banking innovation, digitisation and service quality.