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(Ecofin Agency) – After investing $100 million in the Commercial International Bank’s first green bond issue in August 2021, the International Finance Corporation is partnering with the Egyptian private bank again to help it integrate climate risk into its systems and strategies.
Egyptian private bank Commercial International Bank (CIB) has engaged the International Finance Corporation (IFC) to assist it in assessing its climate risk exposure. A partnership agreement between the two parties was signed last Wednesday, March 22. The Egyptian banking institution intends to further integrate climate risk management into its strategies and systems while ensuring that any climate-related financial risk is disclosed in its portfolio.
“Climate-related financial risks are increasingly becoming more relevant for financial institutions. […] Central banks, financial supervisors, investors, and other parties around the world are taking a keen interest in risks and opportunities deriving from climate strategies. CIB believes that climate-related risks are cross-cutting drivers of the existing risk categories such as Credit, Operational, Market, Liquidity, and Reputational Risks,” indicated Talha Karim, CIB’s Chief Risk Officer.
The partnership comes after the IFC invested $100 million in the CIB’s green bond in August 2021. At the time, the green bond was the first of its type issued by the Egyptian private sector. Through it, CIB wanted to increase its loans to companies that invest in green, including green buildings, renewable energy, and energy efficiency. The banking institution, which noted a growing demand for climate finance in Egypt was thus committing to expand its financing options to promote environmentally friendly projects that contribute to the fight against climate change.
The new partnership between IFC and CIB will improve the integration of climate-related risks into the bank’s risk management. It will also enable the Egyptian bank to align with international standards and best climate risk management practices.
Let’s note that from 2016 to date, the IFC has invested $1.8 billion in climate projects.
Chamberline Moko
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