MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Loans $45.3m to Union bancaire pour le commerce et l’industrie (UBCI) of Tunisia for On-lending to Micro-, Small, Medium-sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a multilateral institution headquartered in London, has announced that it will loan EUR 40 million (USD 45.3 million) to Union bancaire pour le commerce et l’industrie (UBCI), the Tunisian commercial banking subsidiary of BNP Paribas, a French financial group. The aim of the loan is to provide “long-term”[1] funding to micro-, small and medium-sized enterprises (MSMEs) in Tunisia.

Ms Marie-Alexandra Veilleux, the head of EBRD’s office in Tunisia, said that “MSMEs are the key driver of Tunisia’s economic transition and the main vehicle of job creation. Supporting their expansion is one of our core priorities in the country. Through this new financing, we foster the development of the private sector and make it more sustainable”[1]. Mr Patrick Poupon, UBCI’s managing director, added that “UBCI’s loan portfolio grew by over 13 per cent in the first three quarters of 2014, the highest increase seen among listed Tunisian banks. […] The new facility will undoubtedly enlarge and diversify our financing capacity for MSMEs and thereby contribute to strengthening the domestic economy”[1].

As of December 31, 2012, UBCI reported total assets of TND 2.5 billion (USD 1.3 billion). BNP Paribas reported total assets of EUR 1.8 trillion (USD 2.04 trillion) as of December 31, 2013. With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013. EBRD funded 20 projects in Tunisia with total commitments of EUR 210 million (USD 238.3 million) between 2012 and 2014.

By Alíz Crowley, Research Associate

About Union bancaire pour le commerce et l’industrie (UBCI)

Union bancaire pour le commerce et l’industrie (UBCI) is a Tunisian financial institution that was established in 1961. As of 2014, BNP Paribas, a French financial group holds 50.085 percent of the equity in UBCI with the remaining shares being held by Tunisian private shareholders. UBCI offers a range of financial services including retail banking, commercial finance, bank insurance and asset management. As of December 31, 2012, the institution reported total assets of TND 2.5 billion (USD 1.3 billion).

About BNP Paribas

Resulting from the 2000 merger between two French banks, Banque Nationale de Paris (BNP) and Paribas, BNP Paribas is a financial services provider headquartered in Paris. The bank has operations in 75 countries and focuses on retail banking, investment banking and wealth management. As of December 31, 2013, BNP Paribas reported total assets of EUR 1.8 trillion (USD 2.04 trillion).

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 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). With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.

[1] European Bank for Reconstruction and Development (EBRD), EBRD and UBCI support small firms in Tunisia

MicroCapital, July 3, 2014, 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

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 Universe Profile: Union bancaire pour le commerce et l’industrie (UBCI)

MicroCapital Universe Profile: BNP Paribas

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

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