By Nneka Nwogwugwu
The European Bank for Reconstruction and Development (EBRD) has announced that it is securing a loan of $25 billion to the National Bank of Kuwait Egypt (NBKE).
EBRD clarified in a statement that this step comes in its endeavors to boost renewable energy and energy efficiency in Egypt.
According to EBRD, 15 percent of the total loan amount is being co-financed by the Green Climate Fund (GCF).
“The funds will be on lent to Egyptian small and medium size enterprises (SMEs) and households to finance investments to mitigate the impacts of climate change. The application of new technologies is expected to promote the transition to an environmentally sustainable, low-carbon and climate resilient economy in Egypt,” it clarified.
It added that the GCF and EBRD’s partnership for transformation has seen the GCF support six EBRD program to the tune of $ 830 million, catalyzing more than $ 3.6 billion in total project value. The GCF is the world’s largest climate fund, supporting developing-country efforts to respond to the challenges of climate change.
This loan is being extended under the EBRD’s Green Economy Financing Facility (GEFF), which provides finance and advice to private-sector businesses to support Egypt’s green economy transition. The facility has a financing pool worth €140 million for energy-efficiency and renewable energy investments.
NBKE is an Egyptian joint stock company and a subsidiary of the NBK group. It has been a partner of the EBRD since 2015, when it agreed an SME loan and a trade finance facility, followed in 2016 by an energy-efficiency loan under the Egypt GEFF.
Egypt is a founding member of the EBRD. To date, the Bank has invested €7.7 billion in the country through 132 projects.
Promoting the green economy transition in Egypt by supporting efforts to diversify its energy mix and energy-efficiency investments is one of the Bank’s priorities in the country.
Source: Egypt Today
