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AGTF provides $30 million loan to Banque Misr for on-lending purposes (Linked to Umbrella Record ID#36104)
| Funder | People's Bank of China (PBC) |
|---|---|
| Recipient Organization | Banque Misr |
| Country | Egypt |
| Start Date | Nov 08, 2022 |
| End Date | Aug 17, 2033 |
| Duration | 3,935 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 104809 |
Grant Description
AGTF provides $30 million loan to Banque Misr for on-lending purposes On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of the $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024.
The AGTF is sponsored by the PBOC and the administered by AfDB.
Then, on November 8, 2022, AGTF approved a $30 million loan agreement (ID#5050230001001) with Banque Misr — an Egyptian state-owned bank — for on-lending purposes.
In parallel, the African Development Bank (AfDB) approved a $130 million loan (ID#2000230030101) to Banque Misr for on-lending purposes. Both of these loans carry 10-year maturities. The other borrowing terms of the loans are unknown.
The purpose of the project is to support onward lending to small- and medium-sized enterprises (SMEs) and corporates operating in key sectors of the Egyptian economy — in particular, industry, information and communications technology (ICT) and agriculture/agribusiness. 40% of the the loan proceeds are expected to benefit SMEs while the other 60% is expected to be used to extend loans to corporates.
Staff Comments
- The AfDB project identification number is AFDB-P-EG-HAB-011.
- Banque Misr SAE was established in 1920 as a commercial bank and is now the second-largest bank in Egypt with a strong presence in the domestic banking sector. Wholly owned by the state, it had a loan market share of 20% as of June 30, 2021. The bank currently has 725 electronically integrated local branches located nationwide to provide services to its customers in Egypt with plans to expand to 875 by the end of 2022. It has around 20,000 employees, serving a large base of more than 13 million clients in Egypt. Banque Misr is one of the most systemically important public-sector banks in the country given its history of state affiliation and strong domestic franchise. It is run as a profit-oriented commercial bank although its strategy is closely linked to the government’s macro-economic policy. Banque Misr provides a range of corporate, retail and investment banking services. Apart from Egypt, it has banking subsidiaries in Germany and Lebanon and branches in the UAE and France, while the Saudi Arabian cabinet granted the bank a license to open its first branch in the country.
- The borrower's agreements with AfDB and Banque Misr govern, among other things, the use of proceeds, disbursement triggers and reporting requirements.
Sources & References
- Egypt: African Development Bank extends $160 million loan to Banque Misr to strengthen private sector participation in Egypt’s economy
- Project Summary Note BANQUE MISR SAE Reference No: P-EG-HAB-011
- Egypt - MISR Bank Project Summary
- Banque Misr receives USD 130 mln of credit from African Development Bank
- Egypt - MISR Bank Project Summary Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
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Banque Misr
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