MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Invests $60m in Banque Marocaine du Commerce Extérieur’s Eurobond Issue for Micro-, Small, Medium-Sized Enterprises in Morocco

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution, recently invested USD 60 million in a 5-year, senior, unsecured USD 300 million bond issue by a Moroccan public joint stock bank, Banque Marocaine du Commerce Extérieur (BMCE). BMCE plans to use the proceeds from its debut bond issue to expand its lending to micro-, small and medium-sized enterprises (MSMEs) in Morocco. No information is available about other investors in the BMCE’s bond issue.

As of 2012, BMCE reported MAD 231 billion (USD 28 billion) in assets and net income of MAD 1.2 billion (USD 140 million) from its operations in 28 countries in Africa, Asia and Europe. In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Tejas Jain, Research Associate

About Banque Marocaine du Commerce Extérieur (BMCE)

Banque Marocaine du Commerce Extérieur (BMCE), headquartered in the city of Casablanca, is a Moroccan commercial bank that was founded in 1959. Apart from Morocco, BMCE operates in 28 countries including Belgium, China, France, Germany, Italy, Netherlands, Spain and United Kingdom. As of 2012, BMCE reported MAD 231 billion (USD 28 billion) in assets and net income of MAD 1.2 billion (USD 140 million).

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. 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 29 countries 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 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources:

European Bank for Reconstruction and Development Website, “BMCE – Investment in Eurobond issue”
http://www.ebrd.com/pages/project/psd/2013/45456.shtml

MicroCapital Story, December 27, 2013, “European Bank for Reconstruction and Development (EBRD) May Loan $27m to Tunisie Leasing to Support On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-may-loan-27m-to-tunisie-leasing-to-support-on-lending-to-micro-small-medium-sized-enterprises-msmes-in-tunisia/

MicroCapital Story, October 4, 2013, “European Bank for Reconstruction and Development (EBRD) Considers Lending $23.5m to Russia’s Transcapitalbank for Residential Energy Efficiency”
https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-lending-23-5m-to-russias-transcapitalbank-for-residential-energy-efficiency/

MicroCapital Story, August 12, 2013, “Middle East and North Africa (MENA) Transition Fund Grants $11m to Moroccan Youth Microentrepreneurship Projects”
https://www.microcapital.org/microcapital-brief-middle-east-and-north-africa-mena-transition-fund-grants-11m-to-moroccan-youth-microentrepreneurship-projects/

MicroCapital Universe Profile: Banque Marocaine du Commerce Extérieur (BMCE)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Banque+Marocaine+du+Commerce+Ext%C3%A9rieur

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

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