Provision of a senior unsecured loan of up to USD 10 million to the National Bank of Kuwait SAE (NBKE) under the FIF – Egypt Youth in Business (“YiB”) program, for on-lending to eligible private MSMEs whose overall operational management responsibility or majority ownership is held by a person (or persons) under the age of 35 as defined in the Policy Statement (“Youth MSMEs”).
The project is expected to increase the pool of financing available to young individuals in Egypt and to help this group of borrowers build their skill-set and develop their businesses, thereby promoting youth entrepreneurship and youth’s participation in business through an integrated approach.
ETI score: 67
Inclusive: The project will increase the availability of finance for youth led businesses to improve their skill-sets, know-how and expand their business capabilities in the market
Competitive: The project will contribute to the sustainable expansion of the Client’s youth-led (or majority owned) MSME loan portfolio. Additionally, the loan will support NBKE in the development and refinement of products, services and/or delivery mechanisms that cater to the needs of young entrepreneurs.
NATIONAL BANK OF KUWAIT EGYPT SAE
The National Bank of Kuwait SAE is the 13th largest bank and 10th largest private bank in Egypt with assets that amount to EUR 4.2 billion as at H1 2022. As of March 2022, NBKE had a market share of 0.9%, 1.3% and 0.9% in terms of total assets, loans and deposits respectively. The Bank is a subsidiary of National bank of Kuwait, Kuwait’s largest bank with over 30% in market share, which owns 99% of the shares
EBRD Finance Summary
Total Project Cost
The YiB loan offers a combination of longer-term financing than what is available in the market, and technical expertise dedicated to capacity building, in addition to a gender-based focus, into a package that promotes financing for youth led and/or majority owned MSMEs in Egypt.
Environmental and Social Summary
Categorized FI (2019 ESP). Under previous exposure, NBK Egypt has demonstrated compliance with PRs 2, 4 and 9. The Client will be required to continue to apply the EBRD’s E&S Risk Management Procedures for the YiB loan including the updated exclusion and newly introduced Referral List stemming from ESP 2019. NBKE’s E&S performance will be monitored through the review of annual environmental and social reports to the Bank.
Technical Cooperation and Grant Financing
The project will be accompanied by the following Technical Cooperation components: (1) capacity building for NBKE, which aims to assist with the product implementation, marketing and general awareness raising, training and pipeline development; and (2) Capacity building to the enterprises in the form of trainings and mentoring, with the aim to strengthen entrepreneurial skills and mind-set via EBRD’s Advice for Small Businesses program. The technical cooperation is expected to be funded by the grant resources from the EBRD Shareholder Special Fund (“SSF”). The loan will also be accompanied by first-loss risk cover for up to 10% of the disbursed YiB sub-loan portfolio, to be paid to NBKE and incentive grants will be provided to eligible micro and small sub-borrowers in order to alleviate the lagging impact from COVID-19. Grant support will be funded by the European Union and the SSF.
Company Contact Information
PSD own updated
07 Aug 2022
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (eg through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organizations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email [email protected] to get guidance and more information on IPAM and how to submit a request.