IFC, a member of the World Bank Group, is providing a €40 million subordinated loan to Attijari bank Tunisia, a leading private bank in Tunisia, part of the Attijariwafa bank Group, to help strengthen its capital base and grow its lending operations, it said in a statement Tuesday.
The loan will help increase its volume of long-term financing for climate-related projects and smaller businesses. The bank has been a pioneer in developing green financing to finance investments such as photovoltaic units, waste treatment plants, and energy efficiency projects, supporting government efforts to boost renewable energy and cut energy intensity, said the same source.
It added that this investment reinforces IFC’s commitment to support the cross-border investments of financial institutions as they aim to expand in the region and boost financial inclusion.
“With this new lending capacity and through our proximity and ability to assess customer requirements and respond to them, we will be able to extend our reach to small and medium businesses to advise them on sustainable energy financing and help them expand,” said Hicham Seffa, the CEO of Attijari bank Tunisia.
He added that IFC and Attijari bank Tunisia initiated their partnership in 2017 with an advisory project on digital services to create new products and increase access to the bank’s offerings for its clients.
“Tunisia’s sustainable energy financing market is nascent but full of potential,” said Kudret Akgun, IFC Manager of Financial Institutions Group for the Middle East and North Africa.
“IFC is committed to supporting private financial institutions in the region that help develop their clients’ businesses while complying with the climate change agenda. This is vital to build a more resilient future for the planet while increasing shared prosperity,” he added.