FAB Seeks $550 Million World Bank Guarantee for Egypt Unit
First Abu Dhabi Bank (FAB), through its Egyptian subsidiary FAB Misr, has applied for a $550 million guarantee from the Multilateral Investment Guarantee Agency (MIGA) — part of the World Bank Group — for a period of up to three years. The guarantee aims to enhance the bank’s capital adequacy and support sustainable growth in Egypt’s banking sector, according to MIGA’s official disclosure.
The move comes shortly after Egypt’s Central Bank imposed a EGP 1 billion fine on FAB for violations related to credit facilities. The new step signals the bank’s commitment to reinforcing its financial position and continuing its expansion strategy in Egypt.
Founded in 2021 following FAB’s acquisition of Bank Audi Egypt, FAB Misr now serves over 349,000 customers through 71 branches and a workforce of 2,377 employees. The bank provides a wide range of corporate, SME, and retail banking services, as well as investment solutions.
Strengthening sustainable and responsible lending
According to MIGA, the project is classified under Category FI-2 of its Environmental and Social Sustainability Policy, as FAB Misr’s loan portfolio—particularly in SME financing and climate-related lending—poses moderate and manageable environmental and social risks.
Under the guarantee terms, FAB Misr must adhere to MIGA’s Exclusion List and global ESG standards, ensuring responsible credit assessments and sustainable project financing.
Portfolio structure and targeted sectors
As of June 2025, FAB Misr’s loan portfolio was distributed as follows: corporates (59%), SMEs (26%), retail (14%), and financial institutions (2%). Key sectors include construction, transport and logistics, energy and natural resources, ICT, real estate, and consumer goods.
Advancing ESG and governance standards
The bank has implemented robust Environmental, Social, and Governance (ESG) policies aligned with international best practices, covering risk management, labor conditions, and grievance mechanisms. It also enforces non-discrimination policies and transparent employment practices.
Positive market impact
The MIGA guarantee is expected to reduce FAB’s risk-weighted assets at the group level, enabling the bank to expand lending to corporates and SMEs, and increase climate-related financing in Egypt. The initiative aligns with the country’s broader efforts to foster responsible banking growth and financial inclusion.