EBRD backs Ibnsina Pharma with $42mn green logistics loan in Egypt

The European Bank for Reconstruction and Development (EBRD) has signed an EGP1.3bn (about $42mn) financing agreement with Ibnsina Pharma (EGX:ISPH), Egypt’s largest pharmaceutical distributor, to support a green logistics expansion, the company said in a disclosure.

The facility will help fund construction of a new warehouse designed to achieve at least EDGE green building certification, alongside broader sustainability upgrades across Ibnsina’s operations. The deal highlights the growing role of development finance in sustaining capital expenditure in Egypt as high domestic borrowing costs continue to weigh on corporate balance sheets.

Under the agreement, the EBRD financing will cover green capital expenditure upgrades, supported by technical advisory services from the bank, including energy audits and resource-efficiency measures aimed at lowering the company’s environmental footprint.

Part of the facility will also provide long-term working capital to support the scaling up of Ibnsina’s nationwide distribution network, reinforcing its position in Egypt’s fast-growing healthcare supply chain.

Once completed, the new warehouse is expected to cut annual carbon dioxide emissions by around 207 tonnes and deliver significant water savings, meeting key conditions tied to the climate-linked nature of the financing.

Ibnsina Pharma is one of Egypt’s leading pharmaceutical distributors, supplying medicines and healthcare products to pharmacies and healthcare providers across the country. The investment aligns with EBRD priorities to promote green transition and climate resilience in the private sector across its countries of operation.