AAIB signs re­volv­ing credit agree­ment worth $50m with EBRD

Bank seeks to push co­op­er­a­tion with EBRD to ben­e­fit from its ex­pe­ri­ence in serv­ing sec­tors, eco­nomic ac­tiv­i­ties tar­geted in Egypt: CEO of AAIB

The Daily News Egypt - - News -

The Arab African In­ter­na­tional Bank (AAIB) has signed a re­volv­ing credit agree­ment to finance for­eign trade worth $50m with the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD) as part of an EBRD pack­age pro­vided to AAIB worth $110m.

The agree­ment al­lows the AAIB to ex­pand its in­ter­na­tional trade finance to its in­sti­tu­tional clients, in co­op­er­a­tion with the EBRD, through all trade finance mech­a­nisms and in­stru­ments, as well as by en­sur­ing com­mer­cial and sov­er­eign risks pro­vided by the EBRD for the com­mit­ments made by the AAIB for in­ter­na­tional in­sti­tu­tions and banks in the ar­eas of trade finance.

The agree­ment was signed by Michael Tay­lor, ex­ec­u­tive di­rec­tor of Fi­nan­cial In­sti­tu­tions at the EBRD, and Mohsen Rashad, head of the Fi­nan­cial In­sti­tu­tions and In­ter­na­tional Re­la­tions sec­tor of the AAIB.

For his part, Sherif Elwy, CEO of the AAIB, stressed the im­por­tance of co­op­er­at­ing with the EBRD, es­pe­cially with re­gard to the de­vel­op­men­tal role of the in­ter­na­tional in­sti­tu­tion, since its pres­ence in the Egyp­tian mar­ket in 2012, which has grown sig­nif­i­cantly in the last three years.

The port­fo­lio of in­vest­ment and finance is more than €3bn by the end of 2018 di­rected at the en­ergy, in­fra­struc­ture, trade, in­dus­try and agri­cul­ture projects as well as the fi­nanc­ing pro­grammes for the largest banks op­er­at­ing in Egypt aimed at fi­nanc­ing clean and re­new­able en­ergy projects ,small and medium-sized en­ter­prises (SMEs), and trade finance.

Elwy pointed out that the AAIB is seek­ing to pro­mote co­op­er­a­tion with the EBRD and to ben­e­fit from the Euro­pean bank’s ex­per­tise in serv­ing the tar­geted eco­nomic sec­tors and ac­tiv­i­ties in Egypt.

Ac­cord­ing to Rashad, the bank’s suc­cess in con­clud­ing these agree­ments with the in­ter­na­tional in­sti­tu­tion, which comes within the scope of the multi-use credit fa­cil­ity and com­pet­i­tive con­trac­tual terms, as well as the risk guar­an­tees pro­vided by the Euro­pean bank, af­firm AAIB’s wor­thi­ness and sup­ports the mar­ket po­si­tion and com­pet­i­tive­ness of the bank at the lo­cal and global lev­els.

The AAIB had se­cured a medium-term five-year loan of $30m from the EBRD to fund SMEs with a tech­ni­cal co­op­er­a­tion agree­ment to de­velop the ca­pac­i­ties of the AAIB to de­velop this vi­tal eco­nomic sec­tor ac­cord­ing to the lat­est in­ter­na­tional stan­dards.

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