EFG loan II

completed

_x000C_The project is to provide a $20 million senior loan of up to 6 year maturity to EFG-Hermes Holding SAE (EFG, or the company). EFG-Hermes is the leading investment bank in Egypt and has an excellent track record. Over the last few years EFG has emerged as a major player in the areas of investment banking, securities brokerage, asset management and private equity in Egypt. The purpose of the IFC loan is: - to finance EFG’s plans for further regional expansion; and - to provide medium term liquidity needed to finance its growing investment banking business. By providing the proposed loan to EFG, IFC will expand the company’s operation in the region and help bring additional competition in the respective markets. Ultimately, IFC’s investment would contribute to the development of regional capital markets. IFC will promote further best practices in internal control policies and procedures. The proposed project would be IFC’s second investment in the company. In February of 2001, IFC Board approved a $30 million, 5-year term loan to EFG, of which $3.1 million is currently outstanding.