An innovative financing agreement has been signed between the European Bank for Reconstruction and Development (EBRD), the Green Climate Fund (GCF), the European Union (EU) and the Suez Canal Bank, marking a new beginning for green growth in Egypt. The US$50 million financing package, equivalent to يورو42.6 million, aims to boost trade and facilitate access to finance by offering green loans to private companies.
The package includes a US$25 million loan from the European Bank’s Green Economy Financing Mechanism, with US$3.75 million from the Green Climate Fund to support the re-lending of households and SMEs investing in climate change adaptation technologies.
The agreement also includes an optional increase of $25 million for Suez Canal Bank’s trade facilitation program, enhancing its capacity in collateral and cash advances. These funds aim to support import and export operations and increase the effectiveness of the bank’s trade finance services.
The EU will also provide a technical support package to facilitate the preparation and implementation of the project, as well as incentive grants of up to $2.9 million to beneficiary groups that successfully implement their projects, to compensate for the costs of adopting higher performance technologies.
This partnership will strengthen the capabilities of Suez Canal Bank employees, who will benefit from training programs aimed at improving their skills in trade finance, compliance, transaction structuring and operational risk management.
Suez Canal Bank is an Egyptian commercial financial institution with total assets of يورو3.4 billion for 2024, operating through a network of 54 branches and employing around 1,700 employees across the country.
As a founding member of the European Bank for Reconstruction and Development (EBRD), Egypt has seen more than يورو13.5 billion invested in 206 local projects since its inception in 2012.
