MICROCAPITAL BRIEF: Oesterreichische Entwicklungsbank (OeEB) Invests $11m in Sanad Fund for MSME for Lending to Micro-, Small, Medium-sized Enterprises (MSMEs) in Middle East, North Africa

Oesterreichische Entwicklungsbank (OeEB), the development bank of Austria, has invested EUR 10 million (USD 10.7 million) in Sanad Fund for MSME, a Luxembourg-based public-private partnership that provides medium- and long-term debt and equity financing in the Middle East and North Africa. The amount will be added to the senior tranche of Sanad’s “debt sub-fund”[1] and it will be available for lending to micro-, small and medium-sized enterprises (MSMEs) in the Middle East and North Africa (MENA) region. It is anticipated that the investment will fund 3,500 new loans.

Wolfgang Reuss, the chairman of Sanad’s board of directors, said that “this investment will allow Sanad to further increase outreach in our target region and facilitate access to finance for micro, small and medium enterprises”[1]. Andrea Hagmann, a member of OeEB’s executive board, added that “the investment in Sanad underscores OeEB’s development objectives and expresses our continued commitment to foster economic growth in the MENA region. MSMEs form the backbone of the region’s economies and, therefore, providing access to much-needed credit will help create jobs”[1].

As of June 30, 2015, Sanad has raised total investor commitments of USD 128.8 million, with USD 169.8 million in approved debt investments. In 2014, OeEB reported total assets of EUR 604.6 million (USD 649.2 million). The organization’s annual net profit for that year amounted to EUR 4.3 million (USD 4.6 million).

By Alíz Crowley, Research Associate

About Sanad Fund for MSME

The Sanad Fund for MSME (micro-, small and medium-sized enterprise) is a private-public partnership that provides “medium- and long-term” loan and equity to financial institutions in the Middle East and North Africa with the intent of strengthening MSMEs as well as local financial markets. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW), and it is funded by the European Union (EU) and the German Federal Ministry of Economic Cooperation and Development, which is known by its German acronym BMZ. Sanad was founded in 2011 and is domiciled in Luxembourg. It focuses in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of June 30, 2015, Sanad has raised total investor commitments of USD 128.8 million, with USD 169.8 million in approved debt investments.

About Oesterreichische Entwicklungsbank AG (OeEB)

Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB also provides technical assistance in an effort to enhance the development impact of projects. In 2014, OeEB reported total assets of EUR 604.6 million (USD 649.2 million). The organization’s annual net profit for that year amounted to EUR 4.3 million (USD 4.6 million).

Sources and Additional Resources

[1] Sanad Fund for MSME, Press Releases, OeEB invests EUR 10 million in SANAD broadening the funding base for micro, small and medium enterprises

[2] Sanad Fund for MSME, Fact Sheets, Fact Sheet, SANAD at a glance – Q2 2015

[3] Oesterreichische Entwicklungsbank (OeEB), Download Center, Annual Report 2014

MicroCapital Universe Profile: Sanad Fund for MSME

MicroCapital Universe Profile: Oesterreichische Entwicklungsbank (OeEB)

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