Project Name：EBRD Financial Intermediary Investment Special Fund—Small Business Account—Phase III—Subproject 6: Tunisie Leasing S.A. MSME project(Tunisia)

Project status：Completed projects

Cooperating Country：North Africa, Tunisia

Project Description：

The EBRD, together with the TaiwanICDF contributed FIISF-SBA III,will provide a senior loan to Tunisie Leasing SA to extend leasing financing to MSME in Tunesia. The Borrower commits to develop the business of leasing to micro, small and medium-sized enterprises meeting the eligibility criteria previously agreed with the EBNRD. MSME Borrowers may be small enterprises, firms, businesses, sole proprietors, or other legal entities formed under the laws of the Republic of Tunisia.

Implementation Start Date：2014-06-12

Implementation End Date：2021-07-12

Project Objectives：The proposed project will assist TL in funding MSMEs in Tunisia, which are underserved by the banking sector. It will also provide much needed long-term funding to a leasing company in a country where liquidity has been an issue since the revolution in 2011.

Executing Agency：EBRD

Implementation Arrangement：The Project will consist of a senior unsecured loan facility from the Bank to the Borrower to make Sub-leases to private micro, small and medium sized enterprises (“MSMEs”) located in Tunisia to finance the purchase of equipment, commercial vehicles and car rental company vehicles in accordance with the terms and conditions set out in the Policy Statement.

Projected Benefits：Transition impact is expected to derive from:
1. Market expansion
This project will support the expansion of the leasing market, at a time when Tunisian leasing companies have a shortage of liquidity in local currency. In addition, the Loan will increase access to funding for MSMEs, which account for 97.8% of active enterprises in Tunisia, but only represent 15% of total loans.
2. Transfer of skills
While MSMEs’ access to finance is restricted on the supply side, it is also constrained on the demand side by a lack of proper financial skills, which results in loan/lease applications of poor quality, which have therefore little chance of being successful. In order to address this, EBRD will provide TC in the form of workshops during which prospective MSME clients of TL will be provided with a training aimed at improving their financial skills and thereby the quality their lease applications.