MICROCAPITAL BRIEF: Sanad Fund for MSME Lends $9m to Tunisie Leasing to Support Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia

The Sanad Fund for MSME (micro-, small and medium-sized enterprises), a Germany-based fund providing loans in the Middle East and North Africa, has agreed to loan EUR 7 million (USD 9.4 million) to Tunisie Leasing, a Tunisian leasing company that focuses on serving MSMEs in Tunisia and Algeria. Tunisie is expected to use the loan to provide services to 400 additional MSMEs in Tunisia. This loan marks Sanad’s second investment in Tunisia; MicroCapital reported on the first investment in July 2013.

According to Wolfgang Reuss, the chairman of Sanad’s board of directors, “With this loan Sanad and Tunisie Leasing are actively supporting [MSMEs], businesses which remain underserved in Tunisia and often lack access to finance. This investment will contribute to these businesses creating employment and economic growth in the country” [1].

As of 2014, Sanad has raised total investor commitments of USD 123 million, with USD 90 million in approved investments [2]. As of December 2013, Tunisie Leasing reported total assets of TND 958 million (USD 556 million) and a gross loan portfolio of TND 735 million (USD 436 million) outstanding [3].

By Benjamin Krupp, Research Associate

About Sanad Fund for MSME (Sanad)

The Sanad Fund for Micro-, Small and Medium Enterprise (MSME) provides “medium- and long-term” debt and equity financing to financial institutions in the Middle East and North Africa with the intent of strengthening local financial markets and the micro-, small and medium-sized enterprise (MSME) sector. The fund is an initiative of the German development bank Kreditanstalt für Wiederaufbau (KfW), and it is funded by the German Federal Ministry of Economic Cooperation and Development (known by its German acronym BMZ) and the European Union. It was founded in 2011 and is domiciled in Luxembourg. Sanad focuses its investments in Algeria, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria and Yemen with particular emphasis on Egypt and Tunisia. As of 2014, Sanad has raised total investor commitments of USD 123 million, with USD 90 million in approved investments.

About Tunisie Leasing

Tunisie Leasing, which began its operations in 1984, provides leasing services to enable individuals and businesses to make acquisitions such as autos, real estate, medical services and construction. The company offers leasing services both in Tunisia and Algeria. Tunisie Leasing reported total assets of TND 624.6 million (USD 370.2 million) and a gross loan portfolio of TND 735 million (436 million) as of December 31, 2013.

Sources and Additional Resources

[1] Sanad: SANAD Makes Second Investment in Tunisia with EUR 7 Million Loan to Tunisie Leasing

[2] Sanad: Fact Sheet SANAD 2014

[3] Tunisie Leasing: Rapport des Commissaires aux Comptes Sur les Etats Financiers Consolides Arretes au 31 Decembre 2013

MicroCapital, July 3, 2014: European Bank for Reconstruction and Development (EBRD), International Cooperation and Development Fund of Taiwan (TaiwanICDF) Loan Tunisie Leasing $14m to Fund Micro-, Small, Medium-sized Enterprises (MSMEs) in Tunisia

MicroCapital, April 7, 2014: European Bank for Reconstruction and Development (EBRD), European Union to Provide Technical Assistance to Small, Medium-sized Enterprises (SMEs) in Tunisia

MicroCapital, July 24, 2013: Sanad Fund for MSME Loans $6m to Enda Inter-Arabe of Tunisia for Young Entrepreneurs, Micro, Small, Medium-sized Enterprises in Rural Areas

MicroCapital Universe Profile: Sanad Fund for MSME (Sanad)

MicroCapital Universe Profile: Tunisie Leasing

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