MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Establish $99m Sustainable Energy Financing Facility for Morocco; to Loan $6m to Banque Marocaine du Commerce Extérieur (BMCE) of Morocco for On-Lending for Sustainable Energy Investments; to Establish $37m Sustainable Energy Financing Facility for Jordan

The European Bank for Reconstruction and Development (EBRD), a multilateral financial institution headquartered in England, is considering the establishment of a EUR 80 million (USD 99.4 million) “Sustainable Energy Financing Facility for Morocco”[1] (MorSEFF) that would disburse loans to EBRD’s partner financial institutions in Morocco. The funds are to be on-lent to corporations and individuals with the aim of financing sustainable energy investments such as “energy efficient and renewable energy technologies, appliances and equipment”[1]. The project will be co-financed with unspecified contributions from the European Investment Bank (EIB), the lending bank of the European Union; the Agence Française de Développement (AFD), the French development finance institution; and the Kreditanstalt für Wiederaufbau (KfW), a German development bank. The European Union’s Neighbourhood Investment Facility and EBRD’s South and Eastern Mediterranean Multi Donor Fund will further support the facility with a joint technical cooperation grant of EUR 3 million (USD 3.7 million) that will be complemented by EUR 12 million (USD 15 million) in other grant funding from the European Union’s Neighbourhood Investment Facility.

Under MorSEFF, EBRD is considering co-financing a EUR 20 million (USD 24.8 million) senior loan to Banque Marocaine du Commerce Extérieur (BMCE), a commercial bank in Morocco, for on-lending to Moroccan small and medium-sized enterprises (SMEs) and households to finance sustainable energy investments. It is anticipated that the loan will also contribute to capacity building within BMCE with regard to financing skills for energy efficiency and renewable energy projects. The loan is expected to be co-financed with contributions of EUR 5 million (USD 6.2 million) each from EBRD, EIB, AFD and KfW. BMCE will further benefit from unspecified technical cooperation support and unspecified grants from the European Union’s Neighbourhood Investment Facility and the EBRD’s South and Eastern Mediterranean Multi Donor Fund.

EBRD is also considering the establishment of a “Sustainable Energy Financing Facility for Jordan”[2] (JorSEFF) in the amount of EUR 30 million (USD 37.3 million), which will be available for EBRD’s partner financial institutions in Jordan for the same purposes as MorSEFF in Morocco. JorSEFF will be co-financed with unspecified contributions by EIB and KfW and will also benefit from technical cooperation, including a joint grant of EUR 1.5 million (USD 1.9 million) from the European Union’s Neighbourhood Investment Facility and EBRD’s South and Eastern Mediterranean Multi Donor Fund. JorSEFF will also be supported with EUR 4.5 million (USD 5.6 million) grant funding from the European Union’s Neighbourhood Investment Facility.

In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries. As of 2013, BMCE reported MAD 236.7 billion (USD 26.7 billion) in assets, net income of MAD 1.2 billion (USD 140 million) and 4 million customers.

By Alíz Crowley, 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 30 countries including Belgium, China, France, Germany, Italy, Netherlands, Spain and United Kingdom. As of 2013, BMCE reported MAD 236.7 billion (USD 26.7 billion) in assets, net income of MAD 1.2 billion (USD 140 million) and 4 million customers.

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.

Sources and Additional Resources

[1] European Bank for Reconstruction and Development (EBRD), Morocco SEFF (MORSEFF)

[2] European Bank for Reconstruction and Development (EBRD), Jordan SEFF

[3] European Bank for Reconstruction and Development (EBRD), MORSEFF- BMCE

[4] Banque Marocaine du Commerce Extérieur, Publications, 2013 Annual Report

MicroCapital, October 22, 2014, European Bank for Reconstruction and Development (EBRD) Funds Advisory Services for Small, Medium-Sized Enterprises (SMEs) in Morocco

MicroCapital, August 21, 2014, European Bank for Reconstruction and Development (EBRD) Likely to Loan Morocco’s Banque Centrale Populaire (BCP), Affiliates $133m for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

MicroCapital, August 21, 2014, European Bank for Reconstruction and Development (EBRD) Likely to Loan $150m in Jordan Including to Bank Al Etihad, Cairo Amman Bank for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

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

MicroCapital Universe Profile: Banque Marocaine du Commerce Extérieur (BMCE)

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