The European Bank for Reconstruction and Development (EBRD) has provided a $40 million four-year term loan to EFG Holding to expand financing for micro, small and medium-sized enterprises (MSMEs) in Egypt.

The facility will provide medium-term funding to support MSMEs seeking capital to invest and expand their businesses. EFG Holding said the financing will be deployed through eligible non-bank financial institution subsidiaries across different customer segments and geographies.

The transaction marks the first facility provided by the EBRD directly to EFG Holding at the holding-company level. The two institutions have an existing relationship, with the EBRD previously providing financing to EFG Holding subsidiaries including Bank NXT, Tanmeyah and Valu.

“Expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth,” said Francis Malige, EBRD Managing Director for Financial Institutions. “Through this transaction, we are deepening our partnership with EFG Holding to ensure more local private businesses, especially those outside major cities, gain the resources they need to invest, innovate and ultimately contribute to a more resilient economy.”

“This facility represents an important step in expanding EFG Holding's role in supporting Egypt's MSME sector,” said Mohamed AbdelKhabir, Group Chief Finance and Operations Officer of EFG Holding. “The four-year tenor provides stable, medium-term funding to support the disciplined growth of our MSME portfolio, enabling our eligible NBFI subsidiaries to expand their activities across different customer segments and geographies.”

The financing also forms part of EFG Holding's efforts to diversify its funding sources.

“This transaction is a valuable addition to EFG Holding's funding base and supports our strategy to diversify our sources of capital,” said Hesham Elbosaty, Group Treasurer at EFG Holding. “EBRD's decision to extend successive facilities across the Group, and now to the holding company itself, is a testament to the trust it places in EFG Holding and a strong signal of the Group's financial strength and institutional credibility.”