EBRD Supports CIB’s Growth with USD 150mn Subordinated Loan

Provision of a subordinated loan of up to USD 150 mn in favor of Commercial International Bank (CIB) to support its expansion efforts and strengthen its capital buffers.

The project will help strengthen CIB’s Tier II capital to support its growth, optimize its capital structure, as well as hedge against further erosion of the bank’s capital base as a result of market volatility. 

-Primary Quality i Resilient: The project will strengthen CIB’s Tier II capital aiding its growth and resilience to market conditions.

-Secondary Quality i Green: As part of the ongoing cooperation with CIB, a framework agreement will be signed that would see CIB allocate, from its own funds, up to USD 31.5mn to finance eligible green residential, commercial, energy, sustainable tourism, sustainable agriculture, pollution prevention, cleaner production, resource efficiency, renewable energy and infrastructure projects. Thereby, accelerating Egypt’s green transition strategy.

EBRD offers financing that is not available in the market – longer tenor than available, from commercial sources on reasonable terms and conditions, which are necessary to structure the project. Additionally, only select international financial institutions, including EBRD, are approved by the Central Bank of Egypt to provide subordinated debt to Egyptian banks.  

CIB is an existing client of the Bank and has been satisfactorily implementing the Bank’s E&S requirements under existing exposure. Additionally, the CIB is compliant with TCFD reporting standards and UN’s Principles for Responsible Banking, and is currently developing a climate risk management framework with the support of the IFC. CIB is required to continue to comply with EBRD’s Performance Requirements (PRs) 2, 4 and 9, and report on its E&S performance to the EBRD on an annual basis.