- Egypt’s CIB and Dutch entrepreneurial development bank FMO signed a credit guarantee agreement worth $50 million
- This agreement will cover loans granted to the Bank’s micro, small and medium enterprises including underserved segments
- The agreement consists of two components; NASIRA risk-sharing facility backed by FMO and others and a technical assistance program
Egypt’s leading private sector bank Commercial International Bank (CIB) and Dutch entrepreneurial development bank FMO have announced that they signed a credit guarantee agreement worth $50 million.
This credit guarantee agreement will cover loans granted to the Bank’s micro, small and medium enterprises (MSMEs), including underserved segments such as women, youth, and migrant borrowers.
“CIB has always been committed to providing innovative products and banking solutions to its SME customers. Our partnership with FMO will allow us to better target small-sized business customers, especially underserved segments, such as women and youth entrepreneurs, and provide them with the needed support during the current global economic challenges,” said Rashwan Hammady, Acting Chief Executive Officer of Retail Banking at CIB.
Hammady further said that CIB is constantly working to reinforce its leading position in the Egyptian market by offering necessary financial and non-financial services that can help SMEs manage their businesses efficiently so as to become the preferred partner for SMEs.
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“This comes in line with the Bank’s efforts to integrate this segment into the Egyptian banking sector and as part of CIB’s strategic direction toward achieving financial inclusion for SMEs,” he added.
The agreement comprises two components: the NASIRA risk-sharing facility backed by FMO, the European Union, and the Dutch government (through the MASSIF fund), and a technical assistance program provided by the Frankfurt School of Finance and Management.
“Signing a risk-sharing agreement with an international entity such as FMO reflects the huge opportunities that can be offered to the SME segment and the strong foundation of the Egyptian banking sector in general and CIB in particular,” said Hany El Dieb, SME Business Head at CIB.
According to him, the technical assistance program with the Frankfurt School of Finance and Management is another milestone in the continuous process to enhance the value proposition offered to CIB’s SME customers.
Marnix Monsfort, Director Financial Institutions at FMO, added:
“Half of young Egyptians see entrepreneurship as a viable career option. To realize this potential, they need access to finance. This USD 50 million NASIRA risk-sharing facility marks our first exposure into Egypt via our Financial Institutions department, and we are excited to partner with our new customer Commercial International Bank as they support innovative entrepreneurship opportunities in the Egyptian SME sector. Furthermore, this transaction is fully aligned with our updated 2030 Strategy: Pioneer Develop Scale, as we collaborate with local partners to improve economic development. We look forward to a long and fruitful partnership with CIB!”
The signing ceremony took place on Thursday, 9 February 2023, at the Dutch Embassy in Cairo, Zamalek.
It was conducted in the presence of CIB’s and FMO’s senior management, the Deputy Dutch Ambassador in Egypt, and a representative of the European Union Embassy in Egypt
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