MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers $21m Loan to Compagnie Internationale de Leasing (CIL) for Micro-, Small and Medium-sized Enterprises (MSMEs) in Tunisia

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, is considering offering a senior, unsecured loan of approximately EUR 15 million (USD 21 million) to Tunisian leasing company Compagnie Internationale de Leasing (CIL) to expand its servicing of micro-, small and medium-sized enterprises (MSMEs) in Tunisia. The deal will also include technical assistance to help CIL improve its risk management and corporate governance and to support the adoption of the International Financial Reporting Standards (IFRS), a set of global accounting standards [1].

CIL was founded in 1992 and is based in Tunis, Tunisia. As of 2012, CIL reported assets of TND 333 million (USD 214 million) [2]. EBRD provides loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By Meraj Husain, Research Associate

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development: “CIL Tunisa – MSME Credit Line,” http://www.ebrd.com/pages/project/psd/2014/45638.shtml

[2] AlphaMena: “CIL Financials,” http://www.alphamena.org/Secure/Company/Company.aspx?Id=44a79439-0ce2-df11-b93b-001d9203162d#&&xpBVJ1yBPh0xbOWp7KFdMxZcB305NUkNYTshNDmZd+0ytmBmWzD5SlgIt0ylX+Xbrk3nKDwI8iNOpc6x/WA4CSLWDqYdbpNn3a/qfNXzvpLliiyx

MicroCapital, February 13, 2014, “responsAbility Loans $20m to Microlender Enda Inter-Arabe of Tunisia,” https://www.microcapital.org/microcapital-brief-responsability-loans-20m-to-microlender-enda-inter-arabe-of-tunisia/

MicroCapital, February 5, 2014, “European Bank for Reconstruction and Development (EBRD) Lends $14m to Societe Generale Banka Montenegro to Support On-Lending for Housing,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-lends-14m-to-societe-generale-banka-montenegro-to-support-on-lending-for-housing/

MicroCapital, February 2, 2014, “European Bank for Reconstruction and Development (EBRD) to Loan $25m to Belvnesheconombank (BelVEB) of Belarus to Support On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-25m-to-belvnesheconombank-belveb-of-belarus-to-support-on-lending-to-micro-small-medium-sized-enterprises-msm/

MicroCapital, January 8, 2014, “European Bank for Reconstruction and Development (EBRD) Loans $4m to Microfund for Women (MFW) of Jordan to Support Onlending to Female Entrepreneurs,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-4m-to-microfund-for-women-mfw-of-jordan-to-support-onlending-to-female-entrepreneurs/

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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