CaixaBank, a Spanish retail bank, recently accepted a loan of approximately MAD 430 million (USD 46.8 million) from the European Bank for Reconstruction and Development (EBRD), a UK-based development finance institution that has been investing in Morocco since 2012. CaixaBank is to use the funding to on-lend to small and medium-sized enterprises (SMEs) that have been adversely affected by COVID-19. In concert with the loan, “EBRD will also support CaixaBank’s expansion strategy to SMEs located outside the Casablanca-Rabat axis.” CaixaBank’s customer base includes 360 Spanish companies that are active in Morocco as well as local and international clients.
CaixaBank has offices in the Moroccan cities of Agadir, Casablanca, and Tangier and also serves 15 other countries. During 2019, the bank earned gross income of EUR 2.1 billion (USD 2.5 billion) on assets of EUR 391 billion (USD 463 billion).
Founded in 1991, EBRD seeks to support a “transition to open, market economies, whilst fostering sustainable and inclusive growth” in 38 countries in Central Asia, Eastern Europe and North Africa. It does this by providing business advice, supporting trade finance, and investing debt and equity in funders of SMEs and microenterprises. EBRD planned disbursements of approximately EUR 8 billion (USD 8.6 billion) during 2020 to grow its portfolio to EUR 48.5 billion (USD 52.4 billion).
By Nathan Kiplagat, Research Associate
Sources and Additional Resources
EBRD news release
https://www.ebrd.com/news/2020/ebrd-and-caixabank-boost-sme-financing-in-morocco.html
EBRD homepage
https://www.ebrd.com
EBRD financials
https://www.ebrd.com/corporate-and-investor-information.html
CaixaBank homepage
https://www.caixabank.com
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