📋 Tender Overview
Location:
West Bank and Gaza
Project number:
56196
Business sector:
Financial institutions
Notice type:
Private
Environmental category:
FI
Approval date:
26 Mar 2025
Status:
Concept Reviewed
English-language PSD published:
18 Feb 2025
Project Description
Provision of a USD 3.0 million (EUR 2.9 million) package in favor of Palestine for Credit and Development (FATEN), the largest non-profit microfinance institution in the West Bank and Gaza. The package will include two facilities as follows: (i) USD 2.0 million SME facility for on-lending to eligible MSMEs based in the West Bank; and (ii) USD 1.0 million Women in Business (WiB) facility for on-lending to eligible women-led businesses in the West Bank. Both facilities will be structured in a single tranche.
The WiB loan will be accompanied by a 20% first-loss risk cover (FLRC) funded by the European Union through its Initiative for Financial Inclusion (Neighbourhood Investment Facility - SEMED Financial Inclusion Programme). The FLRC will be provided for the benefit of FATEN's portfolio of women businesses to encourage FATEN to continue lending to the most underbanked segments of the economy.
Project Objectives
The operation will enable FATEN to scale up lending to MSMEs and women-led businesses in the West Bank with the WiB loan dedicated solely to supporting women-led businesses. This package is crucial in response to the increased demand for financing by MSMEs in the West Bank due to the challenging economic conditions.
Transition Impact
ETI: SME facility (68)
As the largest microfinance institution in WB&G, FATEN is a key partner through which support can be deployed to local private MSMEs in the West Bank, and particularly the most underserved segments including women-led businesses. Accordingly, the transition impact is expected to be derived from the Inclusive and Competitive qualities for both the SME and the WiB loans.
Client Information
PALESTINIAN COMPANY FOR CREDIT AND DEVELOPMENT (FATEN)
Palestine for Credit and Development (FATEN) was established in its current form in 1999 as a private non-profit company. In 2014, FATEN was licensed by the Palestine Monetary Authority (PMA) and is currently operating under its supervision. FATEN is the largest microfinance institution in the WB&G with a market share that exceeds 50% in terms of loans. FATEN operates through 34 branches in the WB&G, covering over 24,000 borrowers.
EBRD Finance Summary
USD .00
USD 2,000,000
Total Project Cost
USD 2,000,000.00
USD 2,000,000
Additionality
Additionality will likely stem from one or more of the following areas: (i) Financing structure (EBRD offers a large volume instrument that fills FATEN's funding gap and a tenor above the market average), and (ii) Knowledge, innovation and capacity-building: EBRD provides TC material to the timely realisation of the project's objectives, including support to strengthen the client's women-led MSME l
