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Overview

CDB provides $40 million loan to Société Arabe Internationale de Banque (SAIB Bank) for on-lending to SMEs (Linked to Record ID#58647)

Commitments (Constant USD, 2023)$42,565,055
Commitment Year•2017Country of Activity•EgyptDirect Recipient Country of Incorporation•EgyptSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 17, 2017
Start (actual)
Sep 30, 2017
End (actual)
Sep 30, 2019

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

Private Sector

  • Société Arabe Internationale de Banque (SAIB Bank)

Loan description

CDB provides $40 million loan to Société Arabe Internationale de Banque (SAIB Bank) for on-lending to SMEs

Interest type•Unknown

Narrative

Full Description

Project narrative

On September 17, 2017, at the Banque Misr headquarters in Cairo, China Development Bank (CDB) signed and Société Arabe Internationale de Banque (SAIB Bank) — a private bank that is jointly owned by Arab International Bank (46.08%), Arab Contractors Investment (17.292%), Misr Insurance Co (11.29%), Misr Life Insurance (9.75%), Hasan Hosni Ibrahim Abdel Meguid (0.01%) — signed a $40,000,000 loan agreement for on-lending to small and medium-sized enterprises (SMEs) in Egypt. The borrowing terms of this loan are unknown. The signing of the loan agreement was attended by China's Ambassador to Egypt, Song Aiguo, and SAIB Bank's Vice Chairman Hassan Abdel-Meguid, and CDB's Executive Vice President, Wang Yongsheng. According to SAIB Bank's end of year financial statement in 2017, the loan was disbursed to SAIB Bank from CDB. As of September 30, 2019, SAIB Bank reported that the full value of the $40,000,000 had disbursed. Also, on September 17, 2017, CDB agreed to loan a special renminbi-denominated loan worth RMB 260,000,000 to SAIB Bank for infrastructure development (as captured in Record ID#58647). Similarly, CDB and Banque Misr signed a memorandum of understanding (MoU) regarding a possible RMB-denominated loan. However, since September 17, 2017, there is no official reporting that suggests CDB ever issued an RMB-denominated loan to Banque Misr.

Staff comments

While this the loan terms are not included on SAIB Bank's annual reports or financial statements, and are missing from CDB annual reports, the loan is classified underdevelopment loans on SAIB Bank's audits. The second loan agreement can be found in Record ID#58647.