MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $64.8m to Banque Tuniso-Kowetienne of Tunisia for On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs), Trade Financing

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development bank, recently announced that it will extend a loan of EUR 40 million (USD 54.8 million) to Banque Tuniso-Kowetienne (BTK), a Tunisia-based commercial bank. BTK intends to use the loan for on-lending to micro-, small and medium-sized enterprises. In addition to the loan, EBRD agreed to issue BTK a revolving credit facility of USD 10 million to support its trade financing activity. As part of the agreement, EBRD will offer BTK technical assistance through a series of training and educational workshops on import and export financing.

As of June 2013, BTK operates 21 branches in Tunisia and had total assets of TND 1.3 billion (USD 815 million). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By A’kos Szebeni, Research Associate

About Banque Tuniso-Kowetienne (BTK)

Banque Tuniso-Kowetienne (BTK) is a private-sector, commercial bank that operates in Tunisia and is owned by the French banking group Banque Populaire Caisses d’Epargne (BPCE); the Tunisian government; and the Kuwait Investment Authority, the Kuwaiti sovereign wealth fund. The bank’s business lines include corporate and retail banking, insurance services, real estate investment and trade finance. The bank operates 21 branches in Tunisia and reported TND 1.3 billion (USD 815 million) in total assets as of fiscal year-end 2012.

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 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 (EBRD), “EBRD and BTK support small businesses in Tunisia,” http://www.ebrd.com/pages/news/press/2014/140124.shtml

MicroCapital, January 18, 2014, “European Bank for Reconstruction and Development (EBRD) to Loan $2m to FINCA Jordan for On-Lending to Micro-, Small Enterprises (MSEs),”
https://www.microcapital.org/european-bank-for-reconstruction-and-development-ebrd-to-loan-2m-to-finca-jordan-for-on-lending-to-micro-small-enterprises-mses/

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, 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, November 21, 2013, “International Finance Corporation (IFC) Loans $31m to Fullerton Credit to Support Small, Medium-Sized Enterprises (SMEs) in China,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-loans-31m-to-fullerton-credit-to-support-small-medium-sized-enterprises-smes-in-china/

MicroCapital, July 9, 2013, “European Bank for Reconstruction and Development Loans $80m to Turkey’s Yapi Kredi for SME Energy Efficiency Projects,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-loans-80m-to-turkeys-yapi-kredi-for-sme-energy-efficiency-projects/

MicroCapital, February 8, 2013, “International Finance Corporation (IFC), Yes Bank to Create Fund for Small Businesses in India,” https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-yes-bank-to-create-fund-for-small-businesses-in-india/

MicroCapital Universe Profile: Banque Tuniso-Kowetienne (BTK), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=banque+tuniso-kowetienne

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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