The Housing and Development Bank (HDB) has signed a Memorandum of Understanding with the Frankfurt School of Finance and Management, under the auspices of the German Agency for International Cooperation (GIZ), as part of the GREET Green Capacity Building Initiative funded by Germany's Federal Ministry for Economic Cooperation and Development (BMZ). The agreement aims to support the development of innovative green financial products and strengthen the bank's institutional capabilities in sustainable finance. The signing ceremony was attended by Tamer Negm, HDB's Assistant Managing Director for Corporate Credit, Syndicated Loans, Treasury and Investment; representatives from the Frankfurt School and GIZ; as well as senior bank officials. Both sides reaffirmed their commitment to advancing green finance solutions and institutional capacity-building in support of the Sustainable Development Goals (SDGs) and Egypt's transition toward a green economy, in line with global trends and domestic market priorities. The partnership aligns with HDB's strategic direction to expand innovative financing tools that embed sustainability principles across the banking sector. It also leverages the Frankfurt School's extensive international experience in designing and implementing sustainable finance frameworks in emerging markets. The cooperation will enable the development of a wide range of products, including green loans, sustainability-linked financing, and frameworks for green bonds and sustainable sukuk. It will also support the creation of green investment portfolios, introduce tailored financing mechanisms for SMEs operating in the green economy, develop tools to measure the environmental impact of financial products, and roll out awareness programmes to promote sustainable finance principles among clients. Commenting on the agreement, Tamer Negm expressed his pride in the strategic partnership and praised the Frankfurt School's global leadership in sustainable finance. He said the MoU represents a significant milestone in HDB's expansion of sustainable financial offerings and underscores the bank's commitment to adopting international best practices to deliver innovative products that meet the needs of the Egyptian market amid accelerating environmental and economic transitions. Negm highlighted that Q3 2025 marked strong momentum in the bank's sustainable finance efforts, with HDB's sustainable finance portfolio rising to EGP 6.93bn, a 70% increase compared to 2024. Sustainable financing now accounts for 23% of the bank's total corporate, syndicated loan, and SME financing portfolio, up from 13% during the same period last year, reflecting clear progress in embedding sustainability across the bank's operations. He added that the partnership represents a major step toward institutionalising sustainability across HDB's activities, enhancing internal capabilities, and fostering innovative financial tools that support Egypt's national drive towards a green economy. Negm affirmed that sustainability remains a core pillar of the bank's identity and a fundamental component of its 2025–2030 strategy.
