The European Bank for Reconstruction and Development (EBRD) has issued a €10 million senior unsecured loan to Union Bancaire pour le Commerce et l’Industrie (UBCI), one of Tunisia’s leading private banks.
This loan agreement is one of the first to be signed under the EBRD’s Green Economy Financing Facility (GEFF) in Tunisia. UBCI will lend the funds on to the Tunisian private sector – including support for micro, small and medium-sized enterprises (MSMEs) – helping to tackle gender gaps in access to green finance. This facility aims to support the transition to a green economy by scaling up financing for low-carbon, climate-resilient technologies and services.
The facility will be supported by a comprehensive technical cooperation package funded by the EBRD and the European Union (EU) to assist UBCI with the preparation, implementation, verification and monitoring of projects. The package will also support training and other capacity-building activities for UBCI’s staff that promote equal access to climate finance for women and men.
Under this facility, the EU will also provide incentive grants to eligible sub-borrowers on successful completion and verification of their green investments, seeking to encourage MSMEs to adopt advanced green technologies.
The new financing is supported by the Currency Exchange Fund (TCX), a facility backed by the EU that contributes to the growth of financial markets in developing economies and provides foreign exchange hedging to Tunisian banks at a reduced price.
Mark Davis, the EBRD’s Managing Director for the Southern and Eastern Mediterranean, said: “With this new GEFF loan to UBCI, we are celebrating a milestone in our promotion of green investments alongside TCX and the EU, in line with our Green Economy Transition approach. We are proud to strengthen our longstanding partnership with UBCI, supporting small businesses and increasing finance for greener projects.”
Mohamed Koubaa, the CEO of UBCI, added: “By joining the EBRD’s GEFF programme, UBCI reaffirms its commitment to supporting the green economy and Tunisian businesses. This strategic partnership will enable us to better assist our clients with their financing needs for energy efficiency projects, renewable energy and water conservation.”
Giuseppe Perrone, the EU Ambassador to Tunisia, said: “The European Union welcomes the signing of this new GEFF operation, which illustrates our strong commitment to accelerating Tunisia’s green transition by de-risking investments and expanding access to sustainable finance for local businesses. Together with the EBRD, the EU remains committed to helping Tunisia translate its climate ambition into bankable projects, delivering concrete benefits for SMEs, energy efficiency, renewable energy and water resilience.”
Established in 1961, UBCI is headquartered in Tunis, with an extensive network of 102 branches across the country. UBCI offers a wide range of products and services for individual, professional and corporate clients. The bank is listed on the Tunis Stock Exchange.
Since the start of its operations in Tunisia in 2012, the EBRD has invested more than €2.9 billion in 83 projects across the country, with 65 per cent of that investment going to the private sector.
The EU is Tunisia’s largest investor and trading partner, with European companies supporting over 400,000 jobs. Since the 2023 Strategic Partnership MoU, the EU has mobilised over €600 million in grants, leveraging around €5 billion in investments across key sectors such as energy, transport and SMEs.