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Sanad Fund grants Banque du Caire $30m subordinated loan

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Sanad Fund grants Banque du Caire $30m subordinated loan

The transaction will be used to strengthen bank’s capital base and enhance its ability to finance its customers, especially MSMEs


Egypt’s Banque du Caire has signed an agreement to obtain a subordinated loan amounting to $30m from the Sanad Fund for MSME.

The transaction will be used to strengthen the bank’s capital base and enhance its ability to finance its customers, especially micro, small, and medium-sized enterprises (MSMEs), microfinance institutions, and agricultural producers.

It will also support these enterprises in overcoming the economic repercussions imposed by the novel coronavirus (COVID-19) crisis.

The new transaction marks the fund’s first subordinated loan to a bank operating in Egypt after Sanad received its license from the Central Bank of Egypt in July 2020 to provide Tier II capital in the country.

Tarek Fayed, Chairperson and CEO of Banque du Caire, highlighted the importance of this agreement, which strengthens the bank’s ability to provide the necessary financing solutions to local companies in Egypt.

He said, “Banque du Caire is highly committed to providing financing solutions for Egypt’s local businesses. This includes boosting the capacity and reach of microfinance institutions as well as serving MSME clients directly. Our partnership with Sanad signals the confidence of international investors in our operations and impact. The new investment will be valuable in strengthening our capital base to support our growth plans for expanding lending opportunities to a wide array of economic sectors and client segments, including MSMEs and the agricultural sector.”

Sanad Chairperson Daniela Beckmann said, “We are proud of this milestone with Banque du Caire. This collaboration has proven fruitful for Sanad’s efforts to promote income generation and employment in Egypt, the region’s most populous country, by expanding financial inclusion, especially to MSMEs – the backbone of the economy. Now, we are glad to play a role in strengthening this valuable partner’s ability to continue serving this important segment, particularly now when liquidity is essential to the survival of many smaller businesses.”

As a strategic partner of Sanad Fund since 2017, Banque du Caire has demonstrated its commitment to support the fund’s mission in promoting economic growth and creating job opportunities.

Banque du Caire owns the largest microfinance portfolio, with a market share of about 25% in the local banking sector.

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https://dailyfeed.dailynewsegypt.com/2020/12/01/sanad-fund-grants-banque-du-caire-30m-subordinated-loan/
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