- The EBRD will provide $50m for financing green energy projects in Egypt.
- The funds will support household clean energy deployment and SMEs.
The European Bank for Reconstruction and Development (EBRD) is lending $50 million to Qatar National Bank (QNB) subsidiary QNB Alahli to finance green projects in Egypt. Of the $50 million, $7.5 million is provided by the Green Climate Fund (GCF) as concessional financing, the European Union (EU) will contribute $5.128 million under the EU fund for incentive payments and $6.2 million to all participating financial institutions and their clients, and policy dialogue.
QNB Alahli will use the funds to provide small loans to Egyptian households to deploy clean energy solutions. The bank will also provide loans to small and medium-sized enterprises (SMEs) developing clean energy, energy efficiency, water, renewable energy production and resource efficiency projects in the residential (construction), agribusiness, industrial, commercial and services sectors.
The EBRD, GCF, and the EU will provide the funds via Egypt’s Green Economic Finance Facility (GEFF II). This $400 million financing facility initiated by the EBRD and GCF provides credit lines to financial institutions in EBRD countries for climate change mitigation and adaptation investments. The GEFF II benefits mainly two North African countries, Egypt and Morocco. In addition, the EBRD has provided loans of about $720 million to QNB Alahli. The London-based development bank has invested over $9 billion in 132 green projects since 2012.