Bank of Palestine (BOP) and Proparco jointly announced today the signing of an agreement that will see FISEA (the AFD Group fund advised by Proparco), invest USD 12 million in Bank of Palestine through a special issuance of shares. BOP is the leading banking group in Palestine with a deep commitment to financial inclusion, lending to Small and Medium-sized Enterprises (“SME”) and women empowerment. This investment, which comes along a EUR 340,000 technical assistance program to support BOP’s impact-driven projects, will support Bank of Palestine’s efforts to expand financial inclusion and help economic and social development in a fragile market, where economic woes were further exacerbated by the Covid-19 health crisis.

Within the context of the 3rd meeting of the EU-Palestine Investment Platform, Proparco, an AFD Group subsidiary, signed a 60 million euro financing package with Cairo Amman Bank (CAB), Bank of Palestine (BOP) and the European Union (EU) to support green projects in Palestine. The package is composed of Proparco loans coupled with EU grants to provide investment incentives to Palestinian SMEs and technical assistance to project stakeholders. The signatures took place at the Palestinian Prime Minister’s office in Ramallah with the participation of the Palestinian Energy and Natural Resources Authority.

Proparco's portfolio guarantee of $1.3 million will enable Asala to continue its efforts to empower the most vulnerable entrepreneurs in Palestine. It demonstrates Proparco's commitment to supporting the private sector in fragile countries and strengthens its presence alongside microfinance institutions (MFIs) in Palestine and the MENA region.

Local branch in Palestine

Proparco and the Bank of Palestine strengthen their strategic partnership through signing a USD 5 million risk-sharing facility agreement which will cover up to USD 10 million worth of loans granted by Bank of Palestine to Palestinian SMEs.

Microfinance institutions play an essential role in supporting entrepreneurs and companies in creating jobs and increasing access to essentials goods and services. Through a 8 million loan granted to Faten, Proparco continues to strengthen its support to the Palestinian private sector.

With the granting of an ARIZ TPE portfolio guarantee to the first microfinance institution in Palestine, Faten, Proparco is supporting financial inclusion in the country. The $1.86 million (equivalent to '1.75 million) guarantee will support Faten in growing its portfolio of loans to MSEs in the higher risk areas of Gaza, East Jerusalem and Zone C of the West Bank.

Bank of Palestine (BoP) remains resilient in pursuing its development mission by providing support and meeting the needs of Palestinian entrepreneurs and start-ups. In addition to catering to the needs of the innovative eco system, the bank is supporting the digital transformation in the local economy and particularly SMEs. To this effect and in support of Palestine's leading bank in its development efforts towards these two segments, Proparco and FISEA+ have granted two technical assistance subsidies totaling €1,340,000 to the bank. These funds will enable BoP to carry out its mission of supporting a resilient entrepreneurial ecosystem, one by backing the activities of its Intersect incubator for local start-ups, the other by improving access for Palestinian SMEs to the digital tools that are essential for their business.

In collaboration with the Bank of Palestine and the Cairo-Amman Bank, Proparco and the European Union are launching the second phase of green finance program Sunref Palestine. This initiative aims at helping local banks catalyze a new market by increasing loans to green energy projects. Proparco’s investment officer in Palestine, Nura Treish, shines a light on the program.

After an equity investment in the bank in July 2021 and the provision of a 30 MUSD green loan (SUNREF) earlier that year, Proparco continues to support Bank of Palestine, the leading banking group in the West Bank and Gaza, by granting an ARIZ MENA portfolio guarantee funded by the European Union (EU) to the Bank of Palestine (BOP) of 9.2 MUSD, Proparco aims to foster financial inclusion and strengthen the Palestinian private sector, particularly high impact MSMEs.

Proparco provides Bank of Palestine with a senior debt up to USD 20 million, as part of a $65 million financing agreement with a consortium comprising the International Finance Corporation (IFC), and Sanad Fund for MSMEs, advised by Finance in Motion, in support of the Bank’s programs to support economic recovery in Palestine.

Proparco has been working for the private sector and sustainable development for over 40 years. A subsidiary of Agence Française de Développement, Proparco invests to support the growth of private and financial players that actively contribute to the economic, environmental and social development of developing and emerging countries.

Thanks to a USD 10 million loan granted to Nakheel Palestine for Agricultural Investment (“ Nakheel Palestine ”), the No. 1 Palestinian producer of Medjoul dates, Proparco has made its first investment in Palestine. Nakheel Palestine, with the support of Proparco, will create around 350 seasonal jobs and generate more than USD 100 million in foreign exchange earnings for the Palestinian economy.

Proparco’s $5 million credit line will help the microfinance institution further support the Palestinian private sector and will contribute to financial inclusion, which remains low in the Palestinian territories.

Quds Bank and Proparco (AFD Group) signed the first risk sharing agreement under the EU MENA SME Facility. This operation will support Quds Bank in lending the equivalent of 2 million euros to SMEs with a focus on high impact companies including green SMEs, women-owned businesses and start-ups. This project constitutes the first partnership between Proparco and Quds Bank.