Project Description

Provision of a senior unsecured loan to Tanmeyah Micro Enterprise Services ("Tanmeyah") under the Financial Intermediaries Framework ("FIF") of up to USD 5.0m (EUR 4.6m) equivalent in EGP. Envisaged tenor for the facility is 3 years including a 1 year grace period for principal repayment.

Project Objectives

The facility will enable Tanmeyah to further expand its lending to Egyptian MSMEs with a focus focus on underserved segments, whose access to finance remain restricted. The project will address financing gaps in the Egyptian market by allocating 50% of the EBRD's loan to women-led or owned businesses in a gender-responsive manner, building on the success of the WiB loan extended by the EBRD to Tanmeyah in 2019.

Transition Impact

ETI score: 62The project supports the Competitive and Inclusive TI qualities by facilitating: (i) an expansion of Tanmeyah's MSME lending, while supporting underserved segments whose access to finance remains limited; and (ii) channelling at least 50% of the loan amount to women-MSME with a focus on regions outside Greater Cairo and Alexandria.

Client Information

TANMEYAH MICRO ENTERPRISE SERVICES SAETanmeyah Micro Enterprise Services SAE ("Tanmeyah" or the "Company") is one of the oldest and most well-established companies in the Egyptian microfinance market, with over 14 years of operations. It has achieved rapid growth to become a leading entity in the field of working capital financing for low-income clients, being the 2nd largest company in terms of YE2022 outstanding portfolio, with ca. 11% market share and a total asset base of ca. EGP 4.4bn (USD 180m) as of December 2022.With 306 branches nationwide located in rural and urban areas across 25 governorates, largely in the Delta and Upper Egypt' regions, Tanmeyah offers individual loans and ancillary financial services to income-generating microenterprises with no access to traditional banking sector products, and presents a strong focus on women borrowers. It serves ca. 350,000 clients whilst employing 4,200 staff.

EBRD Finance Summary

USD 5,000,000.00Up to USD 5.0 million in EGP equivalent.

Total Project Cost

USD 5,000,000.00Up to USD 5.0 million in EGP equivalent.

Additionality

The project offers longer-term financing than available in the market.

Environmental and Social Summary

Categorised FI (2019). Tanmeyah is an existing client of the Bank and has been satisfactorily reporting and complying with EBRD's standards thus far. Tanmeyah is required to continue to comply with EBRD's Performance Requirements (PRs) 2, 4, and 9. Tanmeyah's E&S performance will be monitored through the review of annual reports. The Project's use of proceeds may include solar sub-projects. Such sub-projects will be managed in line with 'The Proposed Management Approach for Solar Supply Chain Risk Management' (CS/FO/21-35), (CS/FO/21-35 (Add 2)) and any subsequent guidance developed under that approach.The project has a defined use of proceeds under the FIF MSME Policy Statement and is considered Paris aligned based on the Bank's Paris alignment methodology for indirect finance. There is no GET component associated with this project.

Technical Cooperation and Grant Financing

N/A

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.