EFG Holding Secures $40M EBRD Loan to Expand MSME Financing in Egypt

EFG Holding has secured a $40 million, four-year senior unsecured loan from the European Bank for Reconstruction and Development (EBRD) to expand its micro, small, and medium-sized enterprise (MSME) lending portfolio across Egypt.

Structured with a one-year grace period, this facility represents the EBRD’s first direct credit engagement with EFG Holding at the parent level, bypassing previous subsidiary-specific routing.

The capital is earmarked for disbursement via EFG’s non-bank financial institution (NBFI) subsidiaries, strictly targeting rural and underserved peri-urban enterprises.

How will EFG Holding use the $40 million EBRD facility?

EFG Holding has secured a $40 million senior unsecured loan from the European Bank for Reconstruction and Development (EBRD) to expand financing for micro, small, and medium-sized enterprises (MSMEs) in Egypt.

The facility has a four-year tenor with a one-year grace period and will be channelled through eligible subsidiaries of EFG Holding’s non-bank financial institution (NBFI) platform. The financing is intended to increase access to working capital and investment funding for underserved MSMEs, particularly businesses operating outside Egypt’s major urban centres.

The transaction comes as EFG Holding continues to expand its financial-services platform. The group reported a $4.8 billion asset base as of December 2025, according to EBRD.

What are the key terms of EFG Holding’s EBRD financing?

Facility Detail	Key Information
Financier	European Bank for Reconstruction and Development (EBRD)
Borrower	EFG Holding
Facility size	$40 million
Tenor	4 years
Grace period	1 year
Primary purpose	Expand MSME financing in Egypt
Distribution	Through eligible EFG subsidiaries
Geographic focus	Egypt, including underserved areas outside major cities
EBRD project status	Disbursing
EBRD approval date	July 22, 2026

EBRD describes the financing as a way to support EFG Holding’s lending activities and expand access to finance for underserved MSMEs, while providing longer-term funding and liquidity support.

Why is the EBRD partnership significant for EFG Holding?

The transaction marks the first EBRD facility extended directly to EFG Holding at the holding-company level. While the EBRD has previously supported companies within the group, including Bank NXT, Tanmeyah and Valu, the new transaction establishes a direct financing relationship with EFG Holding itself.

For EFG Holding, the four-year facility provides medium-term funding that can be deployed across eligible NBFI businesses and customer segments.

The financing also adds to the group’s funding sources as it seeks to diversify its capital base and expand its MSME portfolio.

EFG Holding said the facility will support businesses seeking to:

• Invest in new capacity and equipment
• Expand their operations
• Access working capital
• Enter new customer segments and geographies
• Create employment opportunities
• Strengthen their contribution to Egypt’s private-sector economy

Which businesses will receive financing through the facility?

The $40 million loan will not be distributed directly by the EBRD to individual MSMEs. Instead, EFG Holding will channel the funds through eligible subsidiaries with MSME operations.

A particular focus will be businesses in rural areas and locations outside Egypt’s principal urban centres, where access to finance is more limited. EBRD said the transaction is intended to address financing gaps while supporting private-sector activity and economic resilience.

This structure allows EFG Holding to use its existing NBFI platform to reach multiple MSME customer segments rather than concentrating the facility within a single operating company.

What does the facility mean for MSME financing in Egypt?

The EBRD financing comes as access to finance remains an important constraint for underserved MSMEs in Egypt. The bank expects the project to contribute to both competitive and inclusive economic transition, with its project assessment assigning the transaction an Economic Transition Impact score of 63.

The EBRD also identifies regional outreach and attracting new MSME clients as key objectives of the facility.

The financing forms part of the EBRD’s broader activity in Egypt. Since beginning operations in the country in 2012, the institution has invested approximately €15.4 billion across 234 projects, according to its latest announcement.

What did EFG Holding and EBRD executives say about the deal?

Mohamed AbdelKhabir, Group Chief Finance and Operations Officer at EFG Holding, said the four-year facility would provide stable medium-term funding to support the disciplined expansion of the group’s MSME portfolio across different customer segments and geographies.

Hesham Elbosaty, Group Treasurer at EFG Holding, described the transaction as an addition to the group’s funding base and part of its strategy to diversify its sources of capital.

Francis Malige, EBRD Managing Director for Financial Institutions, said expanding economic opportunities for MSMEs is central to Egypt’s long-term economic growth, highlighting the importance of reaching businesses outside major cities.

The EBRD separately said the financing will deepen its partnership with EFG Holding and help local private businesses access resources for investment and innovation.

Where was the EFG Holding–EBRD agreement signed?

The agreement was signed alongside EFG Hermes’ 12th Annual London Investor Conference, an event bringing together institutional investors, listed companies and capital-market participants to discuss investment opportunities across the MENA region.

The transaction therefore connects EFG Holding’s MSME financing strategy with its broader engagement with international institutional investors and capital-market participants.

What does the $40 million facility mean for EFG Holding?

The transaction gives EFG Holding access to $40 million in four-year funding, while creating a direct financing relationship with the EBRD for the first time at the holding-company level.

More broadly, the facility strengthens EFG Holding’s ability to deploy medium-term funding through its NBFI platform and extend financing to MSMEs in parts of Egypt where access to capital is more limited.

With EFG Holding reporting $4.8 billion in assets at the end of 2025, the facility represents another funding channel for the group as it expands its financial-services activities in Egypt and the wider MENA region.