Overview

CDB provides $300 million loan to National Bank of Egypt for on-lending purposes

Commitments (Constant USD, 2023)$283,475,739

Commitment Year•2022Country of Activity•EgyptDirect Recipient Country of Incorporation•EgyptSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date: Jan 1, 2022

Start (actual): Apr 1, 2023

First repayment (originally scheduled): Dec 1, 2022

Last repayment (originally scheduled): Dec 30, 2028

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Policy Banks

China Development Bank (CDB)

Receiving agencies

State-owned Banks

National Bank of Egypt (S.A.E.)

Implementing agencies

State-owned Banks

National Bank of Egypt (S.A.E.)

Loan description

CDB provides $300 million loan to National Bank of Egypt for on-lending purposes

Grace period•0.9166 yearsGrant element•22.5773%Interest rate (t₀)•2.4887%Interest type•Fixed Interest RateMaturity•7 years

Narrative

Full Description

Project narrative

In 2022, China Development Bank (CDB) signed a $300 million loan agreement with the National Bank of Egypt (NBE) — a state-owned Egyptian bank — for on-lending purposes. The loan’s estimated borrowing terms include a 7-year maturity, a 0.9166-year grace period, and a 2.4887% interest rate. The loan disbursed in full in April 2023. The borrower used the proceeds of the loan to on-lend in support of 49 projects involving small- and medium-sized enterprise (SME) development and infrastructure construction activities. $200 million was specifically earmarked for SMEs working in sectors including food processing, healthcare, education and services.

Staff comments

1. The face value, commitment date, interest rate, grace period, and maturity of the loan identified in this record is consistent with the data that the Government of Egypt has voluntarily disclosed to the World Bank through the Debtor Reporting System (DRS). See https://www.dropbox.com/scl/fi/pa1pdi8bl6qsch0g9x1ms/December-2023-DRS-Extraction.xlsx?rlkey=l2za4278h4ecu5r8qjdpr4iog&dl=0.