In order to strengthen their partnership with Bank of Caire, British International Investment and the European Bank for Reconstruction and Development have granted a long-term subordinated loan to the Egyptian banking establishment.
Bank of Caire (BDC), one of the largest Egyptian banks, will receive a $100 million subordinated loan from British International Investment (BII) and the European Bank for Reconstruction and Development (EBRD). The resource will support Banque du Caire’s growth plans and optimize its capital structure, by strengthening its Tier II capital.
“This project deepens our partnership with BDC, building on our successful cooperation on trade and inclusion. We are excited to develop it in collaboration with the BII, to support the bank’s capital and resilience and help BDC strengthen its business practices and become more resilient to the impacts of climate change,” said said Francis Malige, EBRD Managing Director for Financial Institutions.
The EBRD has a long history of engagement in Egypt and its financial sector. The European financial institution has already had to finance several commercial banks in Egypt.
This long-term Tier II financing will accelerate Banque du Caire’s growth plans, increasing its capital and ensuring the availability of the necessary funds to strengthen the bank’s growth in various market sectors. With one of the largest branch networks in Egypt (248 in total), a leading position in the microfinance market and a strategic orientation towards digital distribution channels, BDC is well positioned to serve the segments of the market that are key to advancing financial inclusion in the country.
As part of this cooperation, the EBRD will support BDC in implementing a corporate climate governance action plan that contributes to integrating climate change considerations into the bank’s business practices.
Along with this support, BII will provide Bank of Caire with advice on the management of environmental and social risks, with the aim of helping the bank manage these risks in its business activities. This will help improve BDC’s prospects for accessing more foreign capital to support its growth.