Credit Agricole Egypt Secures USD 20 Million Loan For Green Climate Fund Initiative

Credit Agricole Egypt S.A.E. (CAE) has successfully secured a senior unsecured loan of up to USD 20 million under the Green Climate Fund (GCF) Green Economy Financing Facility (GEFF) Regional Egypt II framework. This initiative, approved on April 30, 2024, aims to promote climate change adaptation and mitigation projects in Egypt’s high-energy-intensive economy.

The financing, of which up to USD 3 million is expected to be co-financed by the Green Climate Fund, will empower CAE to extend support to Egyptian households and private micro, small, and medium-sized enterprises (MSMEs). These funds will facilitate investments in climate-resilient technologies and services, aligning with the nation’s transition towards a green economy.

The project, characterized by an Environmental category of Financial Institutions (FI), received approval status on April 30, 2024, with the Project Summary Document (PSD) disclosed on May 3, 2024. Notably, CAE, a subsidiary of the Credit Agricole Group, operates 83 branches and employs over 2,500 individuals across Egypt.

With an EBRD Finance Summary of USD 17,000,000.00 and a Total Project Cost of USD 20,000,000.00, this initiative emphasizes the importance of long-term financing, technical assistance, and incentive grants to promote investments in climate-resilient technologies. CAE will be required to comply with pertinent environmental and social regulations, ensuring adherence to the Environmental and Social (E&S) Procedures outlined by the European Bank for Reconstruction and Development (EBRD).

Moreover, the project anticipates support from the European Union through comprehensive Technical Cooperation (TC) programs and incentive grants to encourage the uptake of climate-resilient technologies and services. This collaborative effort signifies a step forward in accelerating Egypt’s transition towards a sustainable and green economy.