The Green for Growth Fund (GGF) has announced a $20m senior loan to ALEXBANK, the fund’s first deal in both Egypt and the region following its recently approved expansion into North Africa and the Middle East. 

Christopher Knowles, GGF Chairman, said: “We are delighted to announce the first deal of our Middle East-North Africa expansion and honored to support ALEXBANK’s increasing focus on environmental lending.” 

“With our tried-and-tested methods for financing effective energy efficiency measures, we can help ALEXBANK reach even more end-clients to foster energy conservation and emission reductions in Egypt,” he said.

Established in 1957, ALEXBANK is one of Egypt’s leading private sector banks, participated by Intesa Sanpaolo Group since 2007. 

ALEXBANK owns one of the largest private sector branch networks in the country, with a total of 170 branches located in every major Egyptian governorate and about 5,000 employees.

ALEXBANK is increasing its focus on green finance and will on-lend the GGF investment for measures that support renewable energy and investments in energy efficiency measures throughout the country. 

The fund’s technical assistance facility is also providing the lender with training and consultant services on strategy and energy assessment.

Dante Campioni, Managing Director and CEO of ALEXBANK, said: “We are glad to be the first partner in GGF’s Middle East and North Africa expansion and to cooperate with them in this highly strategic sector, as we consider renewable energy a priority for securing sustainable progress in any region of the globe.”

“ALEXBANK believes green finance to be a significant instrument for boosting energy conservation and slashing emissions. For us, joining forces with the GGF marks a cornerstone for bolstering renewable energy and energy efficiency investments also in Egypt,” he added.

The Green for Growth Fund invests in measures designed to cut energy use and CO2 emissions by a minimum of 20% in 19 markets across Southeast Europe, the Caucasus, Ukraine, Moldova, the Middle East and North Africa. 

The fund provides financing to local partners that on-lend to enterprises and private households, and it invests directly in small to midsize renewable energy projects.

The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian development bank OeEB. 

The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, the German ethical bank GLS, and Church of Sweden. 

The GGF is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg and advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.