The African Export-Import Bank’s (Afreximbank) board of directors approved granting a loan to Banque Misr worth $200m.
Banque Misr is the second government bank to receive a loan from Afreximbank this year. The National Bank of Egypt (NBE) announced receiving $300m from Afreximbank in April.
Akef El Maghraby, vice chairperson of Banque Misr, told Daily News Egypt that the officials of the bank are set to sign the loan agreement next week.
He added that the loan aims to finance trade operations and open letters of credit to importers as well as financing exporters, noting that the loan term extends over eight years.
In the past two years, Banque Misr has expanded its access to dollar financing from international financial institutions. The bank signed an eight-year loan worth $500m with the Chinese Development Bank. The bank aims to collect $1bn from international markets through three financial instruments: issuance of international bonds, acquisition of joint loans from international institutions, and securitisation.
El Maghraby noted that the bank has yet to decide the alternative to collect $1bn from international markets and is currently studying all the possible options.
He pointed out the $500m funding from the European Investment Bank is still being considered by its board of directors and will be voted on this month.