NBE to pump USD150mln into small and medium-sized enterprises

Wednesday 11 July 2018 04:37 PM


By Sayed Badr
National Bank of Egypt decided to funnel USD150mln funding, constituting 20% of a loan signed off last month with a world banking consortium, to finance small and medium-sized enterprises.
Back in early June NBE clinched a loan deal worth USD750mln with an international alliance made up of the European Bank for Reconstruction and Development, HSBC, City Bank, Standard Charter, First Abu Dhabi Bank, Emirates NBD, Arab Banking, Ras Al-Khaimah Bank and Commercial Bank of Dubai.
" The remaining loan amount estimated at USD600mln constituting a 80% of the loan will beef up credits extended to companies," informed source told Al-Mal newspaper, noting that the loan helps bolster NBE's liquidity and trust in the Egyptian banking system.
EBRD contributes a portion of the loan worth USD150mln, and a portion of USD75mln is extended by  the other banks per each.
NBE is negotiating an outsized financing ranging between USD500mln and USD750mln with EBRD, while details of the financing is withheld by the source.
NBE received EGP91.55bn loans and foreign facilities late December as compared with EGP89.88bn earlier in June, according to NBE's financial statements.
According to a statement delivered this month by deputy chairman at NBE Yehia Abu El-Futuh, NBE targets 25% increase in SMEs' loan portfolio late next June.