The European Bank for Reconstruction and Development (EBRD) is channeling a €10 million loan to Tunisia’s Union Bancaire pour le Commerce et l’Industrie (UBCI) to kickstart a new phase of green lending for local businesses, marking one of the first operations under its Green Economy Financing Facility (GEFF) in the country.
The financing is designed to fuel Tunisia’s transition to a low-carbon economy by providing UBCI, a leading private bank with 102 branches nationwide, with capital to on-lend to private companies. A key focus will be supporting micro, small, and medium-sized enterprises (MSMEs) in adopting climate-friendly technologies, with an added imperative to address gender gaps in access to green finance.
“With this new GEFF loan to UBCI, we are celebrating a milestone in our promotion of green investments,” said Mark Davis, the EBRD’s Managing Director for the Southern and Eastern Mediterranean. He emphasized the deal strengthens the bank’s longstanding partnership with UBCI to “increase finance for greener projects.”
The facility is bolstered by a comprehensive technical cooperation package funded by the EBRD and the European Union (EU) to help UBCI identify, verify, and monitor green projects. Additional capacity-building will promote equal access to climate finance for women and men. To incentivize businesses, the EU will provide direct grants to eligible sub-borrowers upon successful completion of their green investments.
“By joining the EBRD’s GEFF programme, UBCI reaffirms its commitment to supporting the green economy and Tunisian businesses,” stated Mohamed Koubaa, CEO of UBCI. “This strategic partnership will enable us to better assist our clients with their financing needs for energy efficiency projects, renewable energy, and water conservation.”
Critical risk mitigation is provided through foreign exchange hedging supplied at a reduced price by the Currency Exchange Fund (TCX), an EU-backed facility that supports financial markets in developing economies.
EU Ambassador to Tunisia Giuseppe Perrone highlighted the broader strategic commitment: “This operation illustrates our strong commitment to accelerating Tunisia’s green transition by de-risking investments and expanding access to sustainable finance for local businesses.” The EU is Tunisia’s largest investor and trading partner and, since a 2023 Strategic Partnership agreement, has mobilized over €600 million in grants to leverage billions in investments across key sectors.
Since beginning operations in Tunisia in 2012, the EBRD has invested more than €2.9 billion in 83 projects, with a majority directed toward the private sector. This latest loan underscores a concerted push to align economic development with climate resilience in the region.
TunisianMonitorOnline (NejiMed)
