• Investment expected to cut CO2 emissions by more than 29,000 tons annually
• Primary energy savings projected to amount to 150,000 MWh each year
The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, has loaned USD 10 million to the National Bank of Egypt (NBE) to support measures that reduce energy consumption, prevent CO2 emissions, and improve resource efficiency in the country.
NBE is the flagship lender in the Egyptian banking sector, with a wide-ranging branch network across both urban and rural areas. This broad outreach positions the bank as an ideal partner in helping the GGF pursue its mission to expand financing for energy efficiency and renewable energy in the region. This second loan from GGF will be on-lent to industrial borrowers who are undertaking significant measures to increase energy efficiency and reduce energy consumption. Expected energy savings are estimated at 150,000 MWh each year, preventing over 29,000 tons of carbon emissions annually.
GGF Chairman Olaf Zymelka said, “We are very pleased to be continuing our successful collaboration with the National Bank of Egypt to expand financial access to projects that reduce energy consumption. The modernization of industrial processes in particular is key to reining in carbon emissions and protecting our climate. This partner has already proven their commitment to and experience in supporting measures that promote energy efficiency and the responsible use of natural resources.”
Lloyd Stevens, Director at GGF Advisor, Finance in Motion, added: “Demand in Egypt is on the rise for ways to reduce electricity consumption and make the transition to renewable energy. The GGF has been fostering such endeavors in the country since 2016. The support of valuable partners like the National Bank of Egypt has been integral to our success so far.”
NBE Chairman Hisham Okasha reaffirmed the bank’s commitment to partner with GFF for green energy finance in Egypt, stating: “We believe in the importance of boosting the responsible use of energy and resources in our country and reducing CO2 emissions. Together with GGF, we are making dedicated financing available for these purposes.”
ABOUT THE GREEN FOR GROWTH FUND
The GGF helps reduce the use of energy and resources and prevent CO2 emissions. It pursues this goal by providing dedicated financing to businesses and households across 19 markets in the Southeast Europe Region including Turkey, the European Neighborhood Region-East, and the Middle East and North Africa. By using a blended finance structure and working through local partner institutions, the GGF is able to raise awareness and implement green finance activities. The fund combines its financial offering with tailored technical assistance that helps build capacity and which brings energy efficiency measures, renewable energy, and improved resource management toward the mainstream. In addition, by managing the environmental and social (E&S) risks associated with its investments, the fund sets standards for its partners and supports them to enhance their own E&S management systems, as required.
The GGF was initiated as a public-private partnership in December 2009 by Germany’s KfW Development Bank and the European Investment Bank, with financial support from the European Commission, the German Federal Ministry for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and the Austrian Development Bank (OeEB). The fund’s growing investor base comprises donor agencies, international financial institutions and institutional private investors, including the International Finance Corporation, the Dutch development bank FMO, and the German ethical bank GLS. The GGF is advised by Finance in Motion GmbH. MACS Management & Consulting Services GmbH, Frankfurt am Main acts as the technical advisor.
ABOUT THE NATIONAL BANK OF EGYPT
The National Bank of Egypt (NBE) is the largest commercial bank in the Egyptian banking sector. It was established on June 25, 1898, and has an extensive network with 508 branches and outlets, as well as the largest ATM network of more than 4,060 machines and 13,900 point-of-sale terminals. The bank’s operations are supported by over 20,000 high-caliber employees.
NBE enjoys a substantial international presence via subsidiaries, branches, and representative offices in London, New York City, Shanghai, Johannesburg, Dubai, Addis Ababa, and Khartoum, along with a large number of correspondent banks around the world.
NBE is the pioneer in supporting renewable energy and energy efficiency projects in Egypt. The bank has partnered with various reputable international financial institutions by signing facility agreements through which long-term foreign currency funding is made available to local firms undertaking projects aimed at enhancing the environment.