Asian Infrastructure Investment Bank (AIIB) and OPEC Fund for International Development (OPEC Fund) signed agreement to provide $ 200 million loan to National Bank of Egypt which will be devoted to financing the infrastructure sector in Egypt.
AIIB Vice President for Policy and Strategy Sir Danny Alexander attended the signing ceremony for the UAE loan agreement.
This is the first non-regional syndicated loan from the AIIB in the financial institutions sector and the NBE’s first on-lending project for the infrastructure sector. The AIIB will support NBE in its continued efforts to improve its sustainability initiatives.
âThis is AIIB’s first engagement with an Egyptian bank and the project will help NBE diversify its sources of funding for infrastructure sector loans,â said Konstantin Limitovskiy, AIIB Vice President, Investment operations (Region 2). âIt is fully aligned with the AIIB’s thematic priority of advancing sustainable infrastructure and, in partnership with the OPEC Fund, will support the Egyptian government’s intention to close the maturity gap between demand for long-term loans and the availability of short-term deposits. in the Egyptian financial system.
Hesham Elsafty, Group Head of NBE, Financial Institutions and International Financial Services, said the infrastructure sector is of great importance to Egypt and its economy. âWith the $ 200 million in funding from the AIIB and the OPEC Fund, NBE will be able to extend its existing funding to this crucial sector, thereby improving the services offered to Egyptian businesses and having a wider impact. on the economy as a whole. Elsafty said.
Tareq Alnassar, Deputy Managing Director of the OPEC Fund, Private Sector and Trade Finance Operations, signed the agreement on behalf of the OPEC Fund in Abu Dhabi. The signing took place during the sixth annual meeting of the AIIB Board of Governors. Under the theme âInvest Today, Transform Tomorrowâ, the 2021 AIIB Annual Meeting will be held virtually from October 26-28.
“Egypt’s significant infrastructure needs can be met by increasing investment in the public and private sectors, and banks such as NBE will play a critical role in deploying finance where it is needed most,” he said. said Alnassar. âWe are delighted to support NBE’s efforts for on-lending to the private sector and delighted to cooperate for the first time directly with the AIIB in a partner country which is important to our institutions. Our loan aligns well with several Sustainable Development Goals (SDGs), such as SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation and infrastructure).