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Overview

Africa Growing Together Fund provides $16 million loan for Commercial International Bank (CIB) for on-lending purposes (Linked to Umbrella Record ID#36104)

Commitments (Constant USD, 2023)$16,000,000
Commitment Year•2023Country of Activity•EgyptDirect Recipient Country of Incorporation•Multiple JurisdictionsSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Nov 29, 2023
Last repayment (originally scheduled)
May 29, 2027

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

Government Agencies

  • People's Bank of China (PBC)

Cofinancing agencies

Intergovernmental Organizations

  • African Development Bank (AfDB) (ADB) (BAD)

Receiving agencies

Intergovernmental Organizations

  • Africa Growing Together Fund (AGTF)

Private Sector

  • Commercial International Bank-Egypt S.A.E. (CIB)

Implementing agencies

Private Sector

  • Commercial International Bank-Egypt S.A.E. (CIB)

Loan description

Africa Growing Together Fund provides $16 million loan for Commercial International Bank (CIB) for on-lending purposes

Interest type•UnknownMaturity•3.5 years

Narrative

Full Description

Project narrative

On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of the $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB. Then, on November 29, 2023, AGTF signed an $16 million, 3.5-year loan agreement with the Commercial International Bank (CIB) for on-lending purposes. On the same day, the African Development Bank (AfDB) issued several additional loans to CIB for the same purpose. The AGTF and AFDB loan proceeds were to be used by the borrower (i) to fund small- and medium-sized enterprises (SMEs) and corporates in strategic sectors including agriculture, agribusiness, manufacturing, services, ports, logistics, renewable energy and water desalination (ii) strengthening CIB’s capital base and (iii) funding trade including with the rest of Africa for the export of food, pharmaceuticals, electronics and consumer durable goods.

Staff comments

1. The AfDB project identification number is P-EG-HAB-014. 2. CIB was founded in 1975 as Chase National Bank, a joint venture between Chase Manhattan Bank and National Bank of Egypt (NBE), with ownership of 49% and 51%, respectively. In 1987, Chase divested its ownership stake as part of a shift in its international strategy with the stake acquired by NBE which renamed the former joint venture CIB. The bank began offering its shares to the public in 1995 and at the end of 2021 its major shareholders were Alpha Oryx Limited which holds 18.5% and Fairfax Financial Holdings Ltd with 6.5% with the remaining 75% as free floats. CIB is one of Egypt’s leading private sector banks leveraging a well-established network of 215 branches and banking units, a workforce comprising 7,689 employees and 1,307 ATMs spread all over the country (end of 2022). CIB provides banking services to retail clients, SMEs and corporates. CIB operates two representative offices (one in Dubai and the other in Addis Ababa) and has three strategic subsidiaries.