EFG Holding Secures $40 Mn EBRD Loan to Expand MSME Financing

The facility is the first EBRD financing provided directly to EFG Holding at the holding-company level. EBRD has previously provided financing to EFG Holding subsidiaries, including Bank NXT, Tanmeyah, and Valu.

What is EFG Holding?

EFG Holding is an Egypt-based financial institution with more than 40 years of operating history across six countries and two continents. The company operates across three main areas: investment banking, non-bank financial services, and commercial banking.

Through its businesses, EFG Holding provides financial products and services to individuals and businesses. Its non-bank financial services include Tanmeyah, EFG Corp-Solutions, Valu, Bedaya, Kaf, and EFG Finance SMEs. The group also operates EFG Hermes and Bank NXT.

Funding Details

EFG Holding raised $40 million through a four-year term loan from EBRD. The facility has a one-year grace period and will support the company's MSME financing activities in Egypt.

The financing will be provided through eligible EFG Holding subsidiaries involved in MSME financing. It will help expand lending across different customer segments and geographic areas, with a focus on businesses in underserved regions.

This is the first time EBRD has extended a facility directly to EFG Holding at the holding-company level. Earlier EBRD facilities were provided to subsidiaries including Bank NXT, Tanmeyah, and Valu.

How Will EFG Holding Use the Funding?

The funding will be used to expand financing for micro, small, and medium-sized businesses in Egypt. It will support their liquidity and working-capital requirements and help eligible EFG Holding subsidiaries grow their MSME financing portfolios.

The facility is also expected to help EFG Holding diversify its sources of funding.

Who Founded EFG Holding?

EFG Holding traces its roots to Dr. Mohamed Taymour, who founded the company with two partners. In 1980, they launched Technical Financial Services (TFS), a financial consultancy in Egypt. The firm later grew and was incorporated as the Egyptian Financial Group (EFG) in 1984.

Over the years, EFG expanded its financial services business and later merged with Hermes Financial Services in 1996 to form EFG Hermes. Today, EFG Holding operates across investment banking, non-bank financial services, and commercial banking.

The company serves individual customers as well as businesses of different sizes across its markets.

Market and Business Growth

The latest financing expands EFG Holding's relationship with EBRD, which has previously supported several of its subsidiaries. The new facility will allow eligible non-bank financial subsidiaries to expand MSME financing across different customer segments and regions in Egypt.

The financing is also aimed at improving access to capital for businesses outside major cities.

What Happens Next?

EFG Holding will channel the $40 million facility through its eligible subsidiaries and use the funding to support the expansion of MSME financing across Egypt.

Leadership Statements

Mohamed AbdelKhabir, Group Chief Finance and Operations Officer of EFG Holding, said: “This facility represents an important step in expanding EFG Holding’s role in supporting Egypt’s MSME sector. Building on our longstanding relationship with EBRD, which has supported several of our subsidiaries over the years, this transaction opens a new chapter in our partnership as the first facility extended directly to EFG Holding. The four-year tenor provides stable, medium-term funding to support the disciplined growth of our MSME portfolio, enabling our eligible NBFI subsidiaries to expand their activities across different customer segments and geographies.”

Hesham Elbosaty, Group Treasurer at EFG Holding, said: “This transaction is a valuable addition to EFG Holding’s funding base and supports our strategy to diversify our sources of capital. EBRD’s decision to extend successive facilities across the Group, and now to the holding company itself, is a testament to the trust it places in EFG Holding and a strong signal of the Group’s financial strength and institutional credibility.”

Francis Malige, EBRD Managing Director for Financial Institutions, said: “Expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth. Through this transaction, we are deepening our partnership with EFG Holding to ensure more local private businesses, especially those outside major cities, gain the resources they need to invest, innovate and ultimately contribute to a more resilient economy.”

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