Mazghouny & Co has assisted FMO, the Dutch entrepreneurial development bank, sign a credit guarantee agreement, worth USD 50 million, with the Commercial International Bank (CIB), Egypt’s leading private sector bank, to cover loans granted to the bank’s micro, small and medium enterprises (MSMEs), including underserved segments. The signing ceremony took place on 09 February 2023.
The agreement comprises two components: the NASIRA risk-sharing facility backed by FMO, the European Union and the Dutch government (through the MASSIF fund), and a technical assistance program provided by the Frankfurt School of Finance and Management.
NASIRA is a risk sharing facility for local financial institutions, which offers a portfolio guarantee to stimulate lending to underserved segments, with the goal to allow local financial institutions to provide loans to groups they normally perceive as too risky, such as portfolios consisting of loans to young, female, COVID-19 affected and migrant entrepreneurs (including refugees, returnees and internally displaced people).
Along with Clifford Chance team, Mazghouny & Co’s Khadiga Abou-Zeid, Mid-Level Associate, and Yehia Zakaria, Junior Associate, handled the local review of all relevant agreements and documents and assisted with the satisfaction of the transaction conditions, with support from Donia El-Mazghouny, Managing Partner.
If you wish to know more about Mazghouny & Co work in this field, feel free to check our Financing expertise page or reach out to the team.