The European Bank for Reconstruction and Development (EBRD) will allocate € 5 million in funding to BMCE Bank of Africa. The Fund will participate in supporting investment by Moroccan private companies in the green economy.
With this loan, the EBRD signs its first disbursement in a contribution from the Green Climate Fund in Morocco with a co-financing at a preferential rate of 3.75 million euros financed by the French institution and a participation of 1.25 € 1 million from the Green Climate Fund and a technical assistance budget.
The loan agreement, the first tranche of a total budget of € 10 million, was signed by Alain Pilloux, Vice-President of the EBRD and Executive Director of BMCE Bank of Africa Brahim Benjelloun- Touimi, Wednesday, February 27, 2019.
With this risk-sharing mechanism, the EBRD will have to guarantee some of the risks associated with certain loans granted by the partner bank to private companies operating in Morocco, while the BMCE Bank of Africa will increase the volume of its loans to local businesses and will provide its customers with a broader product offering in terms of financing and technical support solutions.
The loan is part of the EBRD’s Green Economy Financing Facilities (GEFF) program, which covers its financing initiatives, through local financial intermediaries, for green investments made by companies in its various countries of operations. These include the MorSEFF program, launched in 2015 to support the improvement of energy efficiency of Moroccan companies.