HSBC Bank launches a $1.5 billion fund to support small and medium-sized companies in Egypt
HSBC Egypt has initiated procedures to launch a fund valued at 1.5 billion Egyptian pounds, equivalent to 31.5 million USD, to invest in small and medium-sized enterprises (SMEs) in Egypt
One of the sources stated that the Egyptian Financial Group (EFG) Holding will manage the fund, which aims to invest in SMEs operating in the fintech sector, with the fund expected to be launched in the third quarter of this year.
The Central Bank of Egypt allows local banks to count their contributions to the capital of investment funds and companies aimed at investing in SMEs, including startups, within the 25% requirement of their credit facilities portfolio dedicated to financing micro-enterprises.
However, these investments must not exceed 10% of the bank’s core capital, and the bank’s share must not exceed 50% of the capital of the fund or the company to avoid being classified as part of the banking group.
According to a banking official, the Suez Canal Bank is contributing to the new fund alongside several other financial institutions, confirming that approval from the Central Bank has been obtained to establish the fund.
HSBC Egypt aims to expand its direct investments in the country, according to CEO Todd Wilcox in a statement last year.
The bank is also promoting investment opportunities in Egypt, which is seeking to attract international investors to industrial, technological, and renewable energy projects, including the Suez Canal Economic Zone.
