SANAD Fund for MSME (SANAD) signed a $30 million agreement to provide its first Tier II capital investment in Egypt to Banque du Caire.
The loan is aimed at supporting the bank’s growth plans and ability to finance local businesses, including micro, small, and medium enterprises (MSMEs), agricultural producers, and microfinance institutions amid the coronavirus (COVID-19) crisis, according to a statement on Tuesday.
This is SANAD’s first subordinated loan to a bank in Egypt after the fund obtained its licence from the Central Bank of Egypt (CBE) in July to provide Tier II capital.
Tarek Fayed, Chairman of Banque du Caire, said: “Banque du Caire is highly committed to providing financing solutions for Egypt’s local businesses. This includes boosting the capacity and reach of microfinance institutions as well as serving MSME clients directly.”
SANAD’s Chairperson, Daniela Beckmann, commented, “This collaboration has proven fruitful for SANAD’s efforts to promote income generation and employment in Egypt, the region’s most populous country, by expanding financial inclusion, especially to MSMEs – the backbone of the economy.”
