Who is eligible to apply for an EgyptSEFF loan?
Any private legal entity investing in energy efficiency and renewable energy projects in Egypt. These include individual entrepreneurs, small, medium and large enterprises (SMEs and LEs) investing in industrial, tourism, agribusiness and/or commercial buildings, as well as suppliers, manufacturers and installers of RE and EE equipment and materials..
What are the Types of Loans available under EgyptSEFF?
EgyptSEFF offers three different financing schemes to suit different investment needs. These are the Fast-Track Project Loan, the Assisted Project Loan and the Supplier Loan.
The Fast-Track Project Loan, or LEME-LESI Loan, is designed for companies planning to replace existing equipment or install new energy-efficient ones. The Fast-Track Project Loan suites small-scale investments better, as it has an expedited application process and an investment incentive payment of 10% of the loan amount excluding custom duties and taxes.
Read more about EgyptSEFF’s Fast-Track Project Loan.
The second type is the Assisted Project Loan, which better suits larger and more complex energy efficiency and renewable energy projects. The loan type provides free technical assistance to clients and an investment incentive payment of 10% or 15% of the loan amount excluding custom duties and taxes, for existing facilities.
Read more about EgyptSEFF’s Assisted Project Loan .
The third type is the Supplier Loan, which is designed for energy efficiency and renewable energy suppliers, installers and manufacturers aiming to expand their operational capacity. The EgyptSEFF Supplier Loan offers clients loans up to USD 1 million. No investment incentive is available for this type of loan.
Read more about EgyptSEFF’s Supplier Loan.
What are the EgyptSEFF loan features (currency, interest rate, repayment period, etc..)?
- The maximum loan amount for a single project under EgyptSEFF is USD 300,000 for the Fast-Track Project Loan, USD 5 million for the Assisted Project Loan and USD 1 million for the Supplier Loan.:The maximum amounts apply to an individual loan amount. The cumulative loans per borrower at any time is capped at USD 5 million.
- The loan can be disbursed to clients in Egyptian Pounds, United States Dollars or Euros.
- The Interest Rate is: 3% + the Central Bank of Egypt's lending rate for EGP, with a minimum of 12%; 4% above 6 months Libor for USD; 4% above 6 months Euribor for Euro.
- The repayment period is up to 5 years (including a grace period of up to 1 year).
- Clients applying under the categories of Fast-Track Project Loan and Assisted Project Loan can receive an investment incentive grant of 10% or 15% of the loan amount excluding custom duties and taxes (depending on the technology implemented) after project completion and satisfactory Verification Consultant Report. Clients under the Supplier Loan type are not eligible for an investment incentive grant.
Which legal entity will I sign the loan agreement with?
The National Bank of Egypt is the EgyptSEFF participating bank and therefore all borrowers’ contractual agreements will be signed with NBE.
What technical services does the EgyptSEFF team provide for clients?
The EgyptSEFF team helps clients by:
- Identifying energy efficiency measures
- Providing support in project applications (if needed)
- Conducting simplified energy audits or surveys for Assisted Project Loans
- Providing a list of eligible equipment, materials and manufacturers/installers/suppliers
- Preparing a Project Assessment Report
- Providing advice, if needed, on the selection or energy efficiency and renewable energy equipment and materials
- Conducting on-site visits during project application/generation
Are the consulting services of the EgyptSEFF team free of charge?
Yes. EgyptSEFF’s technical assistance is funded by the EBRD.
What proportion of my investment is eligible for financing?
Up to 100% of the total investment cost, with a maximum loan amount depending on the type of loan you are applying for and based on the credit decision of the NBE.
Do the loan types have the same loan limit?
No. Each category has a different loan limit. In particular:
- The Fast-Track Project Loan is capped at USD 300,000
- The Assisted Project Loan is capped at USD 5 million, provided the total investment cost is up to USD 10 million
- The Supplier Loan is up to USD 1 million
How much is the investment incentive grant my company is eligible for under the EgyptSEFF Program?
- Fast-Track Project Loans receive 10% of the investment cost or loan amount excluding value added taxes if applicable, whichever is lower
Project Loans receive (depending on the recruited technology) 10% or 15% of the investment cost or the disbursed
loan amount excluding value added taxes, whichever is lower
- Supplier Loans are not eligible for an investment incentive grant
Does EgyptSEFF finance projects in new buildings?
EgyptSEFF does not finance projects in new buildings.
Does EgyptSEFF finance new equipment installations?
Yes, new equipment installations can be financed under EgyptSEFF.
Does EgyptSEFF finance second-hand or used equipment installations?
No, second-hand or used equipment installations are not financed under EgyptSEFF.
Does EgyptSEFF finance process machinery replacement? What about capacity expansion?
Yes, EgyptSEFF finances machinery and equipment replacement.
Does EgyptSEFF finance capacity expansions?
Yes, EgyptSEFF finances capacity expansions, as long as they are more energy efficient and the capacity expansion is not more than twice the current designed capacity.
Are majority state-owned companies eligible under EgyptSEFF?
No, the facility is designed to finance energy efficiency and renewable energy projects in the private sector. Companies applying for financing under EgyptSEFF should have at least 51% private ownership.
Are investments in new production facilities included within the scope of EgyptSEFF?
Yes, but only for the Fast-Track Project Loan. No loans are available for new production facilities under the Assisted Project Loan, but expansion of existing facilities are eligible, as long as they are more energy efficient and the capacity expansion is not more than twice the current designed capacity.
Does EgyptSEFF recommend any suppliers or equipment?
No. The EgyptSEFF team does not recommend any particular suppliers or vendors. A list of eligible equipment is available on the pre-approved List of Eligible Materials and Equipment (LEME). Also there is the List of Eligible Suppliers and Installers (LESI) of LEME. However, the list is not exhaustive and is regularly updated.
I am a supplier/producer/installer of energy efficient equipment/materials. How can I add my company to the List?
You can fill this form. EgyptSEFF will evaluate the eligibility of the product against the List of Eligible Materials and Equipment (LEME) criteria and inform you accordingly.
My company is a supplier of energy efficiency equipment. Can my clients be financed through EgyptSEFF?
Yes, they can apply for an Assisted Project Loan.
My company is a supplier of energy efficiency equipment. Can my company receive a loan under EgyptSEFF?
Yes, you can apply for a Supplier Loan. For more information, refer to the Supplier Loan section.