MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD), International Cooperation and Development Fund of Taiwan (TaiwanICDF) Loan Tunisie Leasing $14m to Fund Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, and the International Cooperation and Development Fund of Taiwan (TaiwanICDF), the principal body that oversees Taiwan’s overseas development programs, have jointly disbursed a loan of EUR 10 million (USD 13.7 million) to Tunisie Leasing, a financial institution that offers leasing services in Tunisia and Algeria. EBRD committed EUR 7 million (USD 9.6 million) of the funds and TaiwanICDF committed the remaining EUR 3 million (USD 4.1 million) of the loan, which is expected to be used for financing leases of office equipment, commercial vehicles and real estate by micro-, small and medium-sized enterprises (SMEs) in Tunisia. The loan will be disbursed in two tranches. Although the loan will be denominated in euros, the sub-loans will be denominated in Tunisian dinars in order to reduce foreign currency risk for the end-borrowers.

Sir Suma Chakrabarti, the President of EBRD, said “we are very happy to be working with Tunisie Leasing on this important investment that makes sure funding is available to those small firms that are so crucial to the country’s economic development”[1]. Fethi Mestiri, General Manager of Tunisie Leasing, reportedly believes the transaction is significant because the cooperation with EBRD “will increase his company’s capacity to finance SMEs and will contribute to the diversification of its funding sources”[1].

Tunisie Leasing reported total assets of TND 624.6 million (USD 370.2 million) as of December 31, 2013. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries. The International Cooperation and Development Fund of Taiwan (TaiwanICDF) reported total assets of TWD 16.14 billion (USD 540.2 million) as of December 31, 2013.

By Alíz Crowley, Research Associate

About the 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 64 countries as well as the European Investment Bank and the European Union as of 2014. 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 in 34 countries.

About the International Cooperation and Development Fund of Taiwan (TaiwanICDF)

The International Cooperation and Development Fund of Taiwan (TaiwanICDF) is the principal body overseeing Taiwan’s overseas development program. TaiwanICDF was established in 1997 with TWD 11.6 billion (USD 360 million) in initial capital. TaiwanICDF aims to promote economic development, social progress and the welfare of the people around the world. It reported total assets of TWD 16.14 billion (USD 540.2 million) as of December 31, 2013.

About Tunisie Leasing

Tunisie Leasing, which began its operations in 1984, provides leasing services for individuals and businesses in sectors such as autos, real estate, medical services and construction. The company offers leasing services both in Tunisia and Algeria. Tunisie Leasing reported total assets of TND 624.6 million (USD 370.2 million) as of December 31, 2013.

Sources and Additional Resources

[1] EBRD, June 2014, EBRD Bolsters Small Enterprises in Tunisia with New Leasing Loan

[2] Tunisie Leasing Website: Financial Information

[3] International Cooperation and Development Fund of Taiwan Website: Publications

MicroCapital, April 7, 2014, European Bank for Reconstruction and Development (EBRD), European Union to Provide Technical Assistance to Small, Medium-sized Enterprises (SMEs) in Tunisia

MicroCapital, March 23, 2014, European Bank for Reconstruction and Development (EBRD) to Loan $7m to Enda Inter-Arabe for On-Lending to Micro-, Small Enterprises (MSEs) in Tunisia

MicroCapital, March 17, 2014, 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

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD)

MicroCapital Universe Profile: International Cooperation and Development Fund (TaiwanICDF)

MicroCapital Universe Profile: Tunisie Leasing

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