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SUNREF II Palestine: supporting green projects with Bank of Palestine
Project
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Signature date
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Location
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Palestine
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Financing tool
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Financing amount (Euro)
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26520509
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Financing details
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USD 30m loan
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Customer
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BANK OF PALESTINE
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Type of customer
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Financial institution
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Country of headquarters
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Palestine
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Project number
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PPS1008
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Environmental and social ranking
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IF-B
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Climate co-benefits
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Project with climate co-benefits
This project is carried out with the support of the European Union and is part of the 2X Challenge initiative.
The content of this project information sheet falls under the sole responsibility of the Proparco and does not necessarily reflect the opinions of the European Union. This information is given at the time of signature, without prejudice to any developments in the operation/project.
Following SUNREF I Palestine, Proparco and the European Union have launched the second phase of the program, SUNREF II, by supporting Bank of Palestine.
Client presentation
Bank of Palestine (BOP) was set up in Gaza in 1960 by the Shawa family. It is the leading financial institution in Palestine, with an extensive network of 73 branches, over 1,700 employees and almost a million clients. With its subsidiary, Arab Islamic Bank, BOP also offers Islamic finance services.
Project description
This SUNREF II program combines a USD 30m credit line provided by Proparco with a technical assistance (TA) package and premiums financed by the European Union for a total of EUR 11.5m. It will also benefit a second participating bank, Cairo Amman Bank, with a USD 25m credit line. The credit lines will finance growth in the “green loan” portfolio (renewable energy, environmental projects, with a focus on energy efficiency) of banks. The TA will assist them with the identification of projects and build their expertise. The premiums will stimulate demand in this market, which is still relatively immature, and will encourage banks to focus their efforts on energy efficiency, a priority segment in this second phase of SUNREF in Palestine.
Project impact
This second SUNREF line dedicated to Palestine, for double the amount (USD 30m) of the previous line (EUR 12.5m in 2018), will allow BOP to continue its expansion into green finance, including in the energy efficiency sector, which is still at a very preliminary stage in Palestine. The program gives priority to SMEs, but is also open to households, and will contribute to getting all the stakeholders to adopt a culture of green energy, while strengthening business competitiveness.
Since 2007, BOP has been playing a pioneering role in supporting the recruitment of women, who account for 42% of employment and 40% of the Board of Directors. It has set the target of 50% of women in senior and executive management positions and on the Board of Directors by 2026. In this respect, the project qualifies for the 2X Challenge.
On the social front, the project should support over 4,700 indirect jobs in the SMEs which will benefit from this credit line.