EBRD Partners With Banque Misr On US$ 100 Million Sustainability-Linked Loan To Strengthen Egypt’s Banking Sector And Advance Green Transition

The European Bank for Reconstruction and Development is providing a US$ 100 million (€85 million) sustainability-linked loan to Banque Misr to strengthen Egypt’s banking sector and advance the country’s sustainability objectives. The funding will enable Banque Misr to expand financing for women-led or owned micro, small and medium-sized enterprises, provide affordable housing loans for low-income individuals, and increase sustainable green lending to private MSMEs. It will also help address financing gaps in underserved market segments.

Dr. Rania Al-Mashat, Egypt’s Minister of Planning, Economic Development and International Cooperation and the country’s Governor at the EBRD, highlighted the government’s ongoing collaboration with international partners to mobilise resources and attract private-sector investment for green transformation projects as part of a broader sustainable development strategy.

Since 2020, concessional financing to the private sector has exceeded US$ 15.6 billion. She praised the partnership with the EBRD, noting that more than 28% of the Bank’s portfolio is allocated to financial institutions, which play a central role in supporting private-sector growth. She also commended the efforts of the Central Bank of Egypt and the Financial Regulatory Authority in strengthening the regulatory framework to introduce new financial instruments and products, thereby boosting financial inclusion and advancing sustainable finance.

Hisham Okasha, CEO of Banque Misr, described the agreement as a clear demonstration of the bank’s commitment to sustainable development, financial inclusion, and Egypt’s green transition. He emphasised that it reflects Banque Misr’s dedication to driving systemic change through strategic partnerships, innovative financing solutions, and cooperation with international financial institutions to strengthen Egypt’s economic resilience against environmental and social challenges.

Francis Malige, Managing Director, Financial Institutions Group, EBRD, said in a statement, “This is a landmark transaction—not just for Banque Misr and the EBRD, but for the broader MENA region. Sustainability is important across the world, but it is particularly important in this region which combines climate and water stress. This signing also reflects the strong partnership EBRD and Banque Misr have built over the years and sends a clear signal: sustainability and commercial performance can go hand in hand. We’re pleased to support Banque Misr as it grows its green lending and expands access to finance for segments that are too often underserved.”

Banque Misr has integrated sustainability into its operations and is recognised as the first state-owned bank in Egypt to publish annual business reports in accordance with the Global Reporting Initiative and the United Nations Global Compact standards. It was also among the first banks to endorse the United Nations Principles for Responsible Banking. Okasha credited the professionalism of all teams involved for successfully concluding one of the bank’s most significant transactions.

Founded in 1920, Banque Misr is Egypt’s second-largest bank and has been working with the EBRD since 2017, when it signed its first small business loan. This was followed by a trade finance facility in 2018, a US$ 200 million package for trade and SME on-lending in 2020, and US$ 100 million for green financing in both 2022 and 2023. Egypt, a founding member of the EBRD, has received over €13.3 billion in investment from the Bank across 202 projects since 2012.