Gulf Banks Jointly Arrange USD 3 Billion Loan for Green and Islamic Financing in Egypt

Egypt has completed a USD 3 billion 3-year loan jointly arranged by a group of Gulf banks. The funds are to be distributed equally for green and Islamic financing in the country, with USD 1.5 billion directed at ESG projects and USD 1.5 billion allocated for Shariah-compliant investments.

Why it Matters?

The new loan marks the second financing given out by Gulf Banks to the Egyptian government. In 2020, Egypt secured a loan amounting to USD 2 billion, arranged by First Abu Dhabi Bank (FAB) and Emirates NBD Bank (Emirates NBD) to cover budget shortfalls and prop the economy through the pandemic and which has since been repaid.

Details

Financing closed in December 2021, registering a return of 260 basis points (BPS) above t...