Morocco secures loan to support climate-focused SMEs: The European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing a loan of up to EUR 25 mn to Morocco’s Banque Centrale Populaire (BCP) for on-lending to private sector entities — particularly SMEs — working on climate change mitigation and adaptation, according to a statement issued by the EBRD yesterday. This is the third facility to be provided to BCP by the EBRD under the Green Economy Financing Facility (GEFF), the statement says.

A raft of support to build BCP’s capacity: The EBRD, EU, and GCF are also providing a technical cooperation package that includes a EUR 4.4 mn grant to build BCP’s capacity and conduct awareness-raising activities on climate change and mitigation tech among the on-lending beneficiaries, the statement notes. These funds will also be used in the preparation, implementation and monitoring of the on-lending program, it adds.

Driving investment in climate change mitigation and adaptation tech: The EU will provide another EUR 2.7 mn grant to BCP to be used as a 10% cashback incentive for the on-lending beneficiaries once their projects have been successfully implemented, the statement notes. This is being done to encourage investment in climate change adaptation and mitigation tech, it adds.

A push to reduce gender disparities in accessing green finance: BCP’s staff will receive training on gender-responsive green finance — an approach that aims to “integrate gender-based factors in investment and lending processes” — to help offset gender-specific issues around financing climate projects, the statement notes.

This is one more boost for regional on-lending to climate focused SMEs: Jordan is set to receive USD 40 mn for on-lending from the EBRD, EU and GCF through the GEFF program, which has already financed facilities worth USD 22 mn to the country so far this year. Morocco’s Bank of Africa – BMCE Group recently secured EUR 13 mn in loans to use for on-lending to SMEs, with EUR 9.75 mn of this funding coming from the EBRD and EUR 3.25 mn from the GCF, and the EU providing a separate EUR 1.43 mn grant. Last year, the EBRD greenlit a USD 25 mn loan to the National Bank of Kuwait Egypt in April, a USD 50 mn loan to QNB AlAhli in June, and a USD 100 mn facility to Egypt’s Banque Misr in November.

IN OTHER CLIMATE FINANCE NEWS-

The EBRD is providing a new EUR 100 mn loan to Morocco’s government-owned Société Nador West Med for construction of the Nador West Med Port, according to a statement (pdf). The loan is an additional second tranche issued under a EUR 200 mn loan agreement reached in 2015, the statement notes. The EBRD will also extend a EUR 1 mn technical cooperation package to assess the port’s potential role in the hydrogen value chain, the statement notes. Société Nador West Med was created specifically to develop the port.