The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) have announced new financing aimed at expanding green and inclusive lending in Tunisia, with a €10 million loan issued to Union Bancaire pour le Commerce et l’Industrie (UBCI).
The senior unsecured loan is one of the first agreements signed under the EBRD’s Green Economy Financing Facility (GEFF) in Tunisia. Under the arrangement, UBCI will on-lend the funds to the Tunisian private sector, including micro, small and medium-sized enterprises (MSMEs), to support investments in low-carbon and climate-resilient technologies.
The facility is designed to help address barriers to green finance, including gender gaps in access to funding, while supporting Tunisia’s transition to a more sustainable economy. Financing will target projects linked to energy efficiency, renewable energy and water conservation, with a focus on practical solutions for businesses.
Alongside the loan, the EBRD and the EU are providing a technical cooperation package to support the rollout of the facility. Funded by both institutions, the package will assist UBCI with project preparation, implementation, verification and monitoring. It also includes training and capacity-building activities for bank staff, with the aim of promoting equal access to climate finance for women and men.
The EU will also make incentive grants available to eligible sub-borrowers once their green investments have been completed and verified. The grants are intended to encourage MSMEs to adopt more advanced green technologies by reducing upfront financial risks.
The financing is further supported by the Currency Exchange Fund (TCX), an EU-backed facility that supports the development of financial markets in emerging economies by offering foreign exchange hedging at reduced cost to Tunisian banks.
“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,” said Mark Davis, the EBRD’s Managing Director for the Southern and Eastern Mediterranean. “We are proud to strengthen our longstanding partnership with UBCI, supporting small businesses and increasing finance for greener projects.”
Mohamed Koubaa, CEO of UBCI, said the agreement reinforced the bank’s role in supporting Tunisian companies. “By joining the EBRD’s GEFF programme, UBCI reaffirms its commitment to supporting the green economy and Tunisian businesses,” he said.
EU Ambassador to Tunisia Giuseppe Perrone said the operation reflected broader cooperation between the EU and the EBRD to expand access to sustainable finance for local firms.
UBCI, founded in 1961, is headquartered in Tunis and operates 102 branches nationwide. Since beginning operations in Tunisia in 2012, the EBRD has invested more than €2.9 billion in 83 projects across the country, with the majority directed to the private sector.
