Project Description
This summary describes a proposed investment by financial institutions yet‑to‑be identified (the Guarantee Holders), which intend to provide short‑term, revolving trade loans to the National Bank of Egypt S.A.E. (NBE) in Egypt (the Guaranteed Transaction). MIGA would provide the Guarantee Holders with up to USD 313.5 million in trade finance guarantees against the risk of non‑payment by NBE.
The MIGA‑covered facility would be used to provide short‑term loans for trade‑related payments supporting Liquefied natural gas (LNG) imports. The tenor of the underlying trade transactions will be up to one year.
Environmental Categorization
The MIGA guarantee will support short-term trade-related transactions. Trade-related transactions typically pose minimal adverse environmental and social (‘E&S’) risks and impacts. The Project has been categorized as ‘FI-3’ under MIGA’s Policy on Environmental and Social Sustainability (2013).
For the purposes of the MIGA guarantee, the applicable E&S requirements are: the MIGA Exclusion List and applicable E&S laws and regulations in Egypt. NBE will be responsible for screening the trade transactions against MIGA’s E&S requirements.
NBE's Labor policies and procedures have been assessed by MIGA and are in line MIGA Performance Standard 2 – Labor and Working Conditions.
Development Impact
The Project’s expected development impact is to support NBE’s continued access to short‑term trade finance in the context of a challenging global financing environment. By helping maintain the availability of trade finance lines from a diversified group of lenders, the Project is expected to support NBE’s ongoing trade finance activities and Egypt’s energy security using a financial instrument tailored to the short‑term nature of trade transactions and of supply disruptions.
