IFC considers $220mn financing package for Egypt’s Banque Misr to boost SME lending

The International Finance Corporation (IFC) is currently studying a financing package worth up to $220mn for Egyptian state-owned lender Banque Misr to support sustainable finance and expand lending to small businesses in Egypt, Al Ahram reported on January 29.

The initiative is part of the IFC’s broader strategy in Egypt to promote climate finance, expand private sector participation, and strengthen the resilience of the banking sector, while enabling local banks to play a larger role in financing sustainable development and inclusive growth.

The first tranche of the package amounts to $150mn in the form of a three-year sustainability-linked loan, subject to approval by the IFC’s board. Any additional funding under the broader package would require further approvals at later stages.

The proposed financing also includes access to a non-binding trade finance facility under the IFC’s Global Trade Finance Program, which is designed to support cross-border trade and improve liquidity for participating banks.

The funding is intended to strengthen Banque Misr’s lending activities in green and sustainable projects. Around 50% of the financing will be allocated to climate-related assets, with 30% of this portion earmarked specifically for financing the bank’s own green buildings and environmentally efficient infrastructure.

The remaining 50% of the package will be directed toward financing micro, small and medium-sized enterprises (MSMEs). Within this segment, 20% of the funding will be dedicated to women-owned businesses, supporting greater financial inclusion and access to credit for female entrepreneurs.

Since 1975, the IFC has invested and mobilised $9bn in Egypt. Its active investment portfolio currently sits at roughly $2.5bn.