Egypt: EBRD to issue $125 million loan to Emirates NBD
The loan will boost the bank’s capital base and its outreach to the economy.The European Bank for Reconstruction and Development (EBRD) has announced that it will issue a subordinated loan of $125 million to Emirates NBD Egypt to boost the bank's capital base and its outreach to the Egyptian economy. The subordinate loan which is the first under the recently modified regulations of the Central Bank of Egypt, enables third party lenders to provide such an instrument to an Egyptian bank. The loan consists of two tranches; the first tranche of $50 million has been committed to boost the bank's capital structure while the second tranche of $75 million is uncommitted. The CEO and Board Member of Emirates NBD Egypt, Giel-Jan M. Van Der Tol said, "we are proud to be the first bank in Egypt to apply this innovative transaction structure to enhance our capital base. This will allow us to further grow our business in Egypt as well as continue to support the development of the real economy." The EBRD Director for Egypt, Philip ter Woort said,
"allowing third party debt to this asset class could become an important additional tool for banks to manage their capital ratios and was developed in less than one year through a strong cooperation between CBE, Emirates NBD and the EBRD. Through this loan we are very pleased to support Emirates NBD Egypt's ambitious growth plans which can bring many benefits to the country, including for the SME sector."