EFG Holding secures $40 million EBRD loan to expand MSME financing in Egypt

Egyptian financial services firm EFG Holding has secured a $40 million, four-year loan from the European Bank for Reconstruction and Development (EBRD) to broaden financing for micro, small and medium-sized enterprises (MSMEs) in Egypt. This marks the EBRD's first direct loan to EFG Holding at the holding company level, following previous loans to subsidiaries such as Bank NXT, Tanmeyah and Valu.

The loan, which spans four years, includes a one-year grace period and aims to enhance the liquidity and working-capital requirements of eligible EFG Holding subsidiaries, with a focus on underserved regions. The funds will enable these subsidiaries to grow their MSME portfolios across various customer segments and geographies, diversifying the group's funding sources.

The loan's introduction represents a significant milestone in EFG Holding's partnership with the EBRD, as it is the first such direct financing partnership between the two entities. This development comes as EFG Holding continues to strengthen its role in supporting Egypt's MSME sector, aligning with the EBRD's commitment to expanding economic opportunities for local businesses, particularly those outside major urban centers.