Agence Française de Développement (AFD) grants a new green line of credit of €75 million (Rs 3 billion) to MCB and SBM

10 Oct 2018

The AFD has granted a new green line of credit to MCB Ltd and SBM Bank (Mauritius), in the wake of the 3rd phase of the SUNREF programme in Mauritius: SUNREF Mauritius. This new edition is even more ambitious than the previous two lines.In addition tocontinuing tosupportmitigationof climate changeprojects,theprogramme now also intends to financeadaptation toclimate change projects, as well as projects promotinggender equality.


SUNREF isthe “greenfinance”label of the AFD. In Mauritius, SUNREF mobilises AFD’s banking partners, MCB and SBM, as well as private sector operators, in an inclusive manner, in order to foster green and inclusive growth, whilst enhancing the resilience of the country to the adverse impacts of climate change. 


Following the success of the first two SUNREF greenlines ofcredit,spanningbetween 2009 and 2017, AFDproactivelyembarked on arenewedpartnership withthepartner banks,MCB and SBM. Mr.P. V.Rao,Acting CEO ofSBM Bank(Mauritius) stressed uponthe importance of this partnership: “After having financed more than 100 green projects together, we areveryproud to be, once again, AFD’s partner in the context of SUNREF III.” Mr. Alain Law Min,Chief Executive Officer ofMCB, declared that: “Partnering with AFD and the SUNREF line enables us to support project developers through MCB’s flagship Green Loan offering, which is a natural extension of our firm commitments towards sustainable development”. 


Consisting ofa financial package of€75millionand sustained by the contribution of the European Union (€7million), the SUNREF Mauritiusline ofcredit intends to pursue the efforts to promote mitigationof climate changeprojects (renewable energy, energy efficiency, reduction ingreenhouse gas emissions), as well as facilitate the transition of Mauritius towards a more resilient and inclusive economy. ForMr.Pouillès-Duplaix, AFDdirectorin Mauritius, SUNREF enables “through directfunding ofthe private sector, on the one hand,to promotethe national action planto combat the effects ofclimate change,and, on the other hand, accompany local economic operators in having a transformational societal impact.” 


As part of the SUNREF Mauritius programme, this line of credit made available to Mauritian partner banks is accompanied by technical assistance, the management of which has been entrusted to Business Mauritius. 


Through thisfinancingpackage,AFDencourages thelocal banks in providingloansto private sector companies fostering green investments and promoting gender equality. These companies willbenefit fromloans withfinancialincentives, such asinvestment grants financed bytheAFD andtheEU, the amount ofwhichwill be adjustedaccording tothe nature of theinvestment(s) made. 


The technicalassistance seeks to strengthen capacitybuildingacrossthedifferentpartnersof the programme. 


For Mrs. Carla Osorio, Head of Cooperation of the Delegation of the European Union to the Republic of Mauritius and the Republic of Seychelles, “The contribution of the European Union to this green line of credit, in the form of financial aid, is consistent with the Sustainable Development Goal no. 7, which aims at improving access to affordable, safe, sustainable and modern energy by 2030. This contribution is also in line with the Government’s 2030 Vision, which is to transform Mauritius into a High-Income country, through the development of several key sectors, including energy.


About AFD


The French Development Agency(AFD), a publicfinancialinstitution whichimplements the policy defined bythe French government, works towards combatingpoverty andpromotingsustainable development.Present across thefour continents,through a network of 85 offices,AFDfinances andsupportsprojectswhich improve the livingconditions of populations,help in fostering economic development and the protection of the planet.In 2017, the AFD devoted €10.4 billion towards project financing in developing countries and overseas territories.


About SUNREF (Sustainable Use of Natural Resources and Energy Finance)


SUNREF’sobjectiveis to promote,in developing countries,private sector investments in favour ofenergymanagementand sustainable management of natural resources, throughloans grantedto partner banks. 


This innovativeprogrammeendeavours at assistingthe transition ofdeveloping countries towards green growth,byenabling businesses, in line with specific eligibility criteria,to benefit fromincentive-based loans for the financing of projects in the fields of environmental performance and energy efficiency, renewable energy or adaptation to climate change. 


About the European Union


The European Union is a unique political and economic union in the world uniting 28 countries. Today, the EU has a total population of over 500 million. Within the European Single Market, people, goods, services and capital can move as freely as within a single country. Since the adoption of the Lisbon Treaty in 2009, the EU has a High Representative of the Union for Foreign Affairs, Mrs. Federica Mogherini, and a new European External Action Service, which is one of the largest diplomatic networks in the world, with 139 delegations and offices.


About MCB


MCB is theleadingfinancial institution in Mauritius andan increasingly prominentregional player.Relyingupon a strong business model, modern distributionchannelsand customer service, MCBhas been facilitatingthe development of individuals,businessesand the country as a wholesince 1838, and consequently playing akeyrole in thesocio-economicdevelopment ofMauritius. MCB is a socially responsibleinstitutioncommittedtopromotingsustainable development principlesand is also a signatory of the Equator Principles and the United Nations Global Compact. 


About SBM Bank (Mauritius) Ltd


SBM Bank (Mauritius) Ltd is theflagship subsidiaryof SBM Holdings Ltd,a financialinvestmentholdingcompany listed on theStockExchange of Mauritius. With a marketcapitalisationofaroundRs 22 billion as at31July 2018, SBMHoldingsLtdis the third largest company listed on the Stock Exchange of Mauritius. SBM Bank (Mauritius) Ltdcovers awide range of customer segments, includingindividuals,high net worth individuals, SMEs, large corporates,internationalinstitutionsand financial institutions. 


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