The European Bank for Reconstruction and Development (EBRD) has provided a €10 million senior unsecured loan to Union Bancaire pour le Commerce et l’Industrie (UBCI), one of Tunisia’s leading private sector banks. This financing marks one of the first agreements signed under the EBRD’s Green Economy Financing Facility in Tunisia and represents an important step in expanding green finance in the country.
Through this facility, UBCI will channel the funds to the Tunisian private sector, including micro, small and medium-sized enterprises. The objective is to support investments in environmentally sustainable projects while also addressing gender gaps in access to green finance.
By improving the availability of funding for climate-friendly technologies and services, the facility aims to accelerate Tunisia’s transition towards a low-carbon and climate-resilient economy. To ensure effective implementation, the loan is accompanied by a comprehensive technical cooperation package funded by the EBRD and the European Union.
This support will assist UBCI throughout the preparation, implementation, verification and monitoring of eligible green projects. It also includes training and capacity-building activities for the bank’s staff, with a strong focus on promoting equal access to climate finance for both women and men.
In addition to technical support, the European Union will provide incentive grants to eligible sub-borrowers once their green investments are successfully completed and verified. These grants are designed to encourage MSMEs to invest in advanced green technologies, such as energy efficiency solutions, renewable energy systems and water conservation measures.
The financing is further supported by the Currency Exchange Fund, known as TCX. Backed by the European Union, TCX helps strengthen financial markets in developing economies by offering foreign exchange hedging solutions to local banks at reduced costs. This support helps mitigate currency risk and makes green financing more accessible and affordable in Tunisia.
Commenting on the transaction, Mark Davis, the EBRD’s Managing Director for the Southern and Eastern Mediterranean, said that the loan represents a key milestone in promoting green investments in partnership with TCX and the European Union. He highlighted the EBRD’s commitment to supporting small businesses and expanding financing for environmentally sustainable projects through its long-standing collaboration with UBCI.
Mohamed Koubaa, Chief Executive Officer of UBCI, stated that joining the EBRD’s Green Economy Financing Facility reinforces the bank’s commitment to supporting the green economy and Tunisian businesses. He noted that the partnership will allow UBCI to better respond to client needs related to financing for energy efficiency, renewable energy and water conservation projects.
Giuseppe Perrone, the European Union Ambassador to Tunisia, welcomed the signing of the new operation, emphasizing the EU’s strong commitment to accelerating Tunisia’s green transition. He highlighted the role of the partnership with the EBRD in reducing investment risks and expanding access to sustainable finance for local businesses, helping transform climate ambitions into practical, bankable projects that benefit SMEs and strengthen energy, renewable and water resilience.
Founded in 1961, UBCI is headquartered in Tunis and operates a nationwide network of 102 branches. The bank provides a broad range of financial products and services to individual, professional and corporate clients and is listed on the Tunis Stock Exchange. The European Union is Tunisia’s largest trading partner and investor, with European companies supporting more than 400,000 jobs in the country.
Since the signing of the Strategic Partnership Memorandum of Understanding in 2023, the EU has mobilised over €600 million in grants, helping leverage approximately €5 billion in investments across key sectors such as energy, transport and small and medium-sized enterprises. Since beginning operations in Tunisia in 2012, the EBRD has invested more than €2.9 billion across 83 projects, with around 65 per cent of this funding directed towards the private sector.
Discover more from SolarQuarter
Subscribe to get the latest posts sent to your email.
