EBRD set to provide second unfunded risk-sharing guarantee to Attijari bank

TUNISIA – The European Bank for Reconstruction and Development (EBRD) has partnered with Attijari bank and Enda Tamweel microfinance to firm up access to finance for Tunisian micro, small and medium-sized enterprises (MSMEs).

EBRD is providing Attijari bank with a second unfunded risk-sharing guarantee of 50 per cent on a loan to Enda Tamweel.

Under the EBRD’s Risk Sharing Framework (RSF), Attijari bank will extend a loan of up to TND 40 million to Enda Tamweel for on-lending to local MSMEs, its core customers, which need financial support to cover liquidity shortages arising from the coronavirus pandemic.

Enda Tamweel will channel part of the financing to women-led firms, which will also benefit from technical capacity-building services.

The Covid-19 crisis has affected Tunisian companies of all sizes, especially those that generate most of their revenues from the tourism, hospitality, services, transport and other hard-hit sectors. Support for small businesses is a priority for the EBRD in its work to strengthen the Tunisian economy.

The Bank’s investments aim to support Tunisia’s competitiveness by opening markets and strengthening governance, promoting economic inclusion for women, young people and those living in remote areas, strengthening financial-sector resilience and supporting the green economy transition.

Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €1.4 billion in 57 projects there and supported more than 1,200 SMEs through European Union-funded technical assistance.

In February this year, EBRD provided Attijari Bank of Tunisia with an unfunded risk-sharing guarantee of 50 per cent on a loan to Enda Tamweel, the leading microfinance institution in the country.

Under the EBRD’s Risk Sharing Framework (RSF), Attijari Bank of Tunisia was to extend a loan of up to TND20 million (US$7.33m) to Enda Tamweel for on-lending to local MSMEs which are its core customers and need financial support to cover their liquidity shortages due to the impact of the coronavirus pandemic.

Last month IFC provided a €40 million (US$45.36m) subordinated loan to Attijari bank Tunisia, a leading private bank in Tunisia, part of the Attijariwafa bank Group, to help strengthen its capital base and grow its lending operations.

IFC’s first loan to Attijari bank Tunisia was to help increase its volume of long-term financing for climate-related projects and smaller businesses.

The bank has been a pioneer in developing green financing to finance investments such as photovoltaic units, waste treatment plants, and energy efficiency projects, supporting government efforts to boost renewable energy and cut energy intensity.

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