UPGRADING EGYPTIAN ENTERPRISES II

Further to the success of the first EUR 25 Million risk capital facility, signed in November 1998, that has been fully allocated and almost entirely disbursed over a three year period, the EIB is implementing a second facility of EUR 25 Million. It will be used by selected financial intermediaries and fund managers to partially finance their own private equity investments, thereby strengthening the equity base of Egyptian enterprises. A profit-sharing formula between the intermediaries and the Bank will ensure an optimal adequation of both parties' interests.

The project aims at financing through equity or quasi equity the creation or the development of Egyptian private companies over a medium or long term period. Priority will be given to small and medium size enterprises. A reasonable return on investment is to be achieved.

Where applicable, an environmental analysis will be part of the Intermediaries' due diligence process while appraising projects to be financed by the EIB. The projects will have to comply with national environment legislation and with the obligations of multilateral environmental agreements to which Egypt is a party.

Industry, agro-industry, tourism, infrastructures, health and education.