EIB, ALEXBANK to Reduce Energy Costs, Boost Renewables

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by KnowESG
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Image courtesy of ALEXBANK

ALEXBANK, a subsidiary of Intesa Sanpaolo group, and the European Investment Bank (EIB) have announced a new tranche of financing worth USD 15 million for renewable energy and efficiency projects in Egypt.

This initiative, signed under the Egypt Green Economy Financing Facility (GEFF) programme, seeks to promote economic modernisation and environmental sustainability by encouraging green investments by Egyptian businesses.

Dr. Rania Al-Mashat, Egypt’s Minister of International Cooperation, commended the continuous collaboration between the EIB and Egypt to support the private sector in line with the country’s current priorities.

She emphasised that the new financing scheme with ALEXBANK will facilitate SME financing to improve efficiency and investment in renewable energy in industrial, commercial, and agricultural sectors.

The scheme aligns with the framework agreement signed between the government and the EIB, aimed at promoting development cooperation, job creation, and innovative solutions to achieve the country’s development goals and increase the role of the private sector. She also highlighted the importance of these funds in accelerating the private sector's adoption of environmental, social, and governance (ESG) principles.

Gelsomina Vigliotti, Vice President of the EIB, explained that the bank collaborates with major financial institutions worldwide to promote investment in renewable energy and reduce carbon emissions. The new partnership with ALEXBANK will allow Egyptian businesses to adopt green energy, reduce energy costs, and contribute to climate action. The initiative also aligns with Egypt's sustainable development strategy for 2030 and the recently launched industrial development strategy.

Dante Campioni, Managing Director and CEO of ALEXBANK, emphasised the importance of investing in renewable and energy-efficient solutions to protect the environment. He stated that the partnership with the EIB supports the bank's shared goals in environmental, social, and governance targets, such as ensuring sustainable energy availability, offering solutions to address climate change issues, promoting financial inclusion, and supporting industrial investments with attractive financing options.

The EIB has agreed on a new USD 15 million framework loan with ALEXBANK, which is part of the GEFF. This facility aims to provide financing for business investments through local financial partners to help companies across Egypt increase investment to reduce energy and water consumption, improve product quality, and increase competitiveness.

The GEFF initiative was unveiled at the Egypt – Europe Energy Interconnectivity dialogue, where Egyptian and international business partners came together to address challenges related to the global energy crisis and climate change. In Egypt, the GEFF initiative provides finance and best-practice advice to help private sector businesses improve their competitiveness.

The new financing scheme, which is jointly backed by the EBRD, is also supported by the European Union through a Neighbourhood Investment Facility grant to incentivise uptake and provide technical assistance to support the identification, evaluation, and monitoring of eligible investment projects. The first cooperation under this scheme will further help overcome insufficient renewable energy investment volumes through a dedicated focus on green investment and technical assistance to develop and accelerate these investments.

The GEFF initiative has been designed to contribute to delivering SDG 7, which aims to provide universal access to affordable, reliable, and modern energy services; SDG 12, which focuses on sustainable consumption and production; and SDG 13, which calls for urgent action to combat climate change and its impact.

The EIB, as the long-term lending institution of the European Union, provides long-term finance for sound investment to contribute towards EU policy goals.

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Source: ALEXBANK

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