Cairo - Mubasher: The European Bank for Reconstruction and Development (EBRD) said it will provide a subordinated loan of $125 million to Emirates NBD Egypt to strengthen the bank’s capital base.
The financing package consists of two tranches, the first is a $50 million committed loan to strengthen the capital structure of Emirates NBD Egypt and support its growth strategy of becoming a leading private sector bank in Egypt.
The second tranche is uncommitted and amounts to $75 million, according to the bank’s statement on Wednesday.
The subordinated loan qualifies as tier II capital under the recently modified regulations of the Central Bank of Egypt (CBE).
“It is the first time under these new regulations that a third party lender provides such an instrument to an Egyptian bank,” the statement indicated.
