AFD partners with Egyptian bank to boost SMEs' access to finance
The €80 million partnership will support small businesses and renewable energy projects.The French Agency Group Development (AFD) has signed a letter of interest for a total amount of €80 million with the Commercial International Bank (CIB) in a bid to support small and medium-sized enterprises (SMEs) and renewable energy projects in Egypt.
It includes a €20 million line of credit provided by Proparco, AFD's subsidiary dedicated to private sector financing, designed to promote SMEs' access to finance.
A credit facility of €60 million will also be provided by AFD to finance environmentally friendly projects, particularly in the renewable energy sector.
The AFD and the CIB said in a press release the credit facility should, in particular, help to attract financing from the banking sector, local and/or international, to fund renewable energy projects led by the private sector.
The funding is fully in line with the COP 21 Agenda, which focuses on the mobilisation of private financing to promote the fight against climate change.
The letter was signed during a visit from French Prime Minister Manuel Valls in Egypt last week.