Banque du Caire (BDC) has secured a $100 million subordinated loan from the European Bank for Reconstruction and Development (EBRD) and British International Investment (BII) to strengthen the Egyptian lender’s Tier II capital.
“This facility will support the growth plans of Banque du Caire and optimise its capital structure,” EBRD said in a statement.
Providing long-term, Tier II funding will accelerate Banque du Caire’s ambitious growth plans, increasing its capital and guaranteeing the availability of much-needed funds to enhance Banque du Caire’s growth within various sectors of the market.
With one of Egypt’s largest branch networks (248 branches nationwide), a market-leading position in microfinance and a strategic push towards digital distribution channels, BDC is well-placed to serve market segments that are critical for advancing financial inclusion in the country.
As part of the cooperation, the EBRD will support BDC in implementing a corporate climate governance action plan, helping to integrate climate change considerations into the bank’s corporate practices, under the principles of the Task Force on Climate-related Financial Disclosures.
“Strong and resilient financial institutions play a crucial role in fostering productive private sectors and robust economies. Our partnership with the EBRD aims to strengthen BDC’s capacity to support businesses that drive Egypt’s economic growth,” Sherine Shohdy, BII Head of Office and Coverage Director, Egypt said in a statement.
Alongside this support, BII will play an integral role in shaping BDC’s strategy and organisational culture by providing guidance on the management of environmental and social risk, aiming to support BDC in managing such risks in its business operations. This will help enhance the bank’s reputation and improve its prospects of accessing more foreign capital to support sustained growth.
