MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Planning to Loan $60m to Bank Audi of Egypt for SMEs, Trade Finance

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, is planning to loan USD 60 million to Bank Audi Societe Anonyme Egyptienne (SAE), the Egyptian arm of Lebanon-based Bank Audi. The loan comprises USD 30 million for on-lending to small and medium-sized enterprises (SMEs) and USD 30 million for trade financing [1].

Under the terms of the deal, Bank Audi SAE must: (1) observe EBRD’s Performance Requirements 2 and 9, which outline certain labor conditions and “environmentally and socially sustainable business practices;” and (2) implement EBRD’s Environmental and Social Risk Management Procedures [1][2].

EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of that year. As of March 2015, Bank Audi reported USD 41.5 billion in total assets, total deposits of USD 35.1 billion and a gross loan portfolio of USD 16.4 billion.

By Benjamin Krupp, Research Associate

About Bank Audi

Bank Audi was founded in 1830 and was incorporated in the form of a private joint stock company in 1962. Headquartered in Beirut, Lebanon, it has 79 branches in the country as well as 72 branches located mainly in the Middle East and North Africa (MENA) as of June 2012. The bank’s main activities include commercial, retail and private banking. As of March 2015, Bank Audi reported USD 41.5 billion in total assets, total deposits of USD 35.1 billion and a gross loan portfolio of USD 16.4 billion.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013, and it reported total assets of EUR 49 billion (USD 65 billion) at the end of that year.

Sources and Additional Resources

[1] EBRD: “FIF – Bank Audi Egypt SME Loan,http://www.ebrd.com/work-with-us/projects/psd/fif-bank-audi-egypt-sme-loan.html

[2] EBRD: “Performance Requirements and Guidance,” http://www.ebrd.com/who-we-are/our-values/environmental-and-social-policy/performance-requirements.html%20

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MicroCapital, April 15, 2015: European Bank for Reconstruction and Development (EBRD) to Loan $32m to Tunisia’s Banque de Tunisie for On-Lending to Micro, Small, Medium-sized Enterprises (MSMEs); $3.2m to Support Women-Led SMEs in Kosovo

MicroCapital Universe Profile: Bank Audi

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

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