Egypt signs $1bn financing as two international institutions join Banque du Caire IPO
Egypt signed $1bn in World Bank financing, while the IFC and EBRD each invested $100m in Banque du Caire's initial public offering.
Egypt signed a $1 billion financing agreement, about EGP 55 billion, with the World Bank on Sunday 1 November, under the second phase of the Development Policy Financing programme aimed at strengthening the economy's resilience, attracting private investment and supporting the transition to a green economy. Prime Minister Mostafa Madbouly attended the signing at the foreign ministry headquarters in the New Administrative Capital, and it was signed by Foreign Minister Badr Abdelatty, who is also Egypt's governor at the World Bank, and the bank's regional director Alwaleed Alataban.
The package includes $800 million in World Bank financing and a $200 million credit guarantee from the United Kingdom, which the bank's board of executive directors approved in May 2026. The financing is the second in a series of three concessional operations supporting Egypt's economic reform programme. The programme aims to improve the governance of state-owned companies, remove obstacles to private investment, strengthen competition, raise domestic revenues and lower government borrowing costs, as well as expand the Takaful and Karama programmes, improve monitoring of greenhouse gas emissions and develop carbon credit markets.
Separately, the International Finance Corporation invested $100 million for a 7% stake, while the European Bank for Reconstruction and Development invested $100 million for a 6.9% stake in Banque du Caire's initial public offering. The head of the Financial Regulatory Authority said the offering adds EGP 80.8 billion to the Egyptian Exchange's market capitalisation.
The financing is linked to the World Bank's 2023-2027 country partnership framework with Egypt and supports national priorities including the state ownership policy, the privatisation programme, Egypt Vision 2030 and the National Climate Change Strategy 2050.
What do these terms mean?
Development policy financing (DPF): A World Bank loan provided in exchange for the government implementing agreed policy reforms, rather than to finance a specific project.
Credit guarantee: A third party's pledge to repay part of a debt if the borrower defaults, which lowers borrowing costs.
Initial public offering (IPO): The process in which a company sells its shares to the public for the first time and lists them on a stock exchange.
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