The long-term Tier II financing will accelerate Banque du Caire’s growth plans by improving capital and guaranteeing much-needed funds to increase the bank’s growth in various sectors
State-owned bank Banque du Caire is receiving a $100 million subordinated loan from the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII) to strengthen the Egyptian bank’s Tier II capital, supporting its growth plans and optimizing its capital structure.
The long-term Tier II financing will accelerate Banque du Caire’s growth plans by improving capital and guaranteeing much-needed funds to increase the bank’s growth in various sectors.
Through the cooperation, the EBRD will support the bank in implementing a corporate climate governance action plan (CCGAP), which will integrate climate change considerations into the bank’s corporate practices, in line with the Task Force on Climate-related Financial Disclosures’ standards.
As one of the country’s largest banks, Banque du Caire maintains the country’s most extensive branch network with 248 branches across Egypt.
“The EBRD has a longstanding commitment to Egypt and its financial sector. This project deepens our partnership with Banque du Caire, building on our successful cooperation in trade and inclusion. We are delighted to develop it together with BII, to support the bank’s capital and resilience and to help Banque du Caire strengthen its corporate practices and become more resilient to the impacts of climate change,” said EBRD Managing Director for Financial Institutions Francis Malige.
“Strong and resilient financial institutions play a crucial role in fostering productive private sectors and robust economies. Our partnership with the EBRD aims to strengthen Banque du Caire’s capacity to support businesses that drive Egypt’s economic growth. BII will also offer its expertise on E&S to help Banque du Caire define a strategy and culture that will enhance the bank’s resilience, help attract more capital and create productive and inclusive opportunities for businesses, employees, and households across Egypt for the long term,” added Sherine Shohdy, BII Head of Office and Coverage Director, Egypt
Banque du Caire’s Chairman and CEO Tarek Fayed commented on the loan, pointing out that “the bank spares no effort to accelerate the pace of transformation towards a green economy and to achieve Egypt’s 2030 vision. We are proud of the strategic partnership with the EBRD and BII, reflecting the confidence of multilateral financial institutions in Banque du Caire’s vision for the future.”
