Deutsche Bank announces $ 500m loan to back Egypt’s Sustainable Financing Framework

29 / 11 / 2023

By Marwa Nassar - -

Deutsche Bank has announced the closing of a $ 500 million 7-year loan agreement with the Egyptian Finance Ministry to finance eligible expenditures under Egypt’s Sustainable Financing Framework (“SFF”).

This covers green use of proceeds such as clean transportation, renewable energy, energy efficiency, sustainable water and wastewater management, etc as well as Social use of proceeds such as affordable basic infrastructure, affordable housing, access to essential services, MSME financing, food security and sustainable food systems.

This financing is a unique and landmark transaction as it benefits from credit insurance provided by the Arab Investment and Export Credit Guarantee Corporation (“Dhaman”). This is the first time Dhaman, an Arab multilateral corporation headquartered in Kuwait, has supported a transaction of this size and nature to support the funding needs of one of its member States.

Deutsche Bank and Bank ABC acted as sole arrangers of the facility on a dual tranche loan benefiting from a 95% insurance cover provided by Dhaman.

Maryam Khosrowshahi, Co-Head Africa Coverage, Head of CEEMEA Public Sector DCM and Chair of Global SSA, said: “We are honored to have enjoyed a long standing multifaceted relationship with the Arab Republic of Egypt and the Ministry of Finance and grateful to have been selected as one of their partners of choice on this innovative and landmark financing. We would like to thank the Ministry of Finance, Bank ABC and Dhaman, and all other involved parties for their trust in Deutsche Bank on this transaction. Together, we have put in place a financing that should yield real developmental impact in Egypt, and with a new structure that we hope will become the benchmark for similar financings in the region.”