The Sanad Fund for MSME (Micro-, Small a Medium-Sized Enterprise), an initiative of KfW Entwicklungsbank that provides medium- and long-term debt and equity to financial institutions in the Middle East, recently made a local-currency loan equivalent to USD 1.5 million to FINCA Jordan Specialized Microloans, a Jordanian microfinance institution (MFI) that is part of the US-based FINCA International microfinance network. Sanad, which means “support” in Arabic, will use the loan to expand credit services to approximately 3,000 additional microentrepreneurs. The MFI will also provide technical assistance with the aim of improving FINCA Jordan’s lending efficiency.
As of July 2012, FINCA Jordan reported total assets of USD 9 million and approximately 15,000 clients served by branches in the Jordanian cities of Amman, Zarqa, Jerash, Dier Alla, Sahab, Ziezya and Norh Shouneh. FINCA International has subsidiaries in 21 countries and total assets of USD 719 million as of 2011.
As of March 2012, Sanad had raised total investor commitments of USD 61 million, with USD 11 million in approved investments.
By Charlotte Newman, Research Associate
About Sanad Fund for MSME
Founded in August 2011, Sanad Fund for MSME (Sanad) provides medium- and long-term debt and equity financing to commercial banks, microfinance institutions (MFIs) and other financial institutions in the Middle East and North Africa (MENA) with the intent of strengthening the micro-, small and medium-sized enterprise (MSME) sector and local financial markets. Sanad will initially be focusing on Egypt, Jordan, Lebanon, Tunisia, followed in stages by Algeria, Iraq, Morocco, the Palestinian Territory, Syria and Yemen. As of March 2012, Sanad had raised total investor commitments of USD 61 million, with USD 11 million in approved investments.
About FINCA Jordan
FINCA Jordan Specialized Microloans is an arm of FINCA International, a US-based nonprofit microfinance organization that serves approximately 700,000 people through its microfinance subsidiaries in 21 countries. As of July 2012, FINCA Jordan reported total assets of USD 9 million and approximately 15,000 clients and branches in the Jordanian cities of Amman, Zarqa, Jerash, Dier Alla, Sahab, Ziezya and Norh Shouneh.
About FINCA International
Founded in 1984 by Dr John Hatch, a pioneer of the village banking model, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. In the 2010 fiscal year, FINCA International served approximately 760,000 clients through its subsidiaries in 21 countries. As of 2011, it had total assets of USD 719 million, with an operating profit of USD 33.9 million. In December of 2011, FINCA launched a subsidiary, FINCA Microfinance Holdings LLC, with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility, and Triple Jump.
Sources and Additional Resources:
SANAD Press Release: “SANAD Fund for MSME Makes Second Investment in Jordan: USD 1.5 Million Loan to FINCA Jordan SML Supports Entrepreneurs,” http://www.sanad.lu/Press-Releases—2012-09-24-SANAD-Fund-for-MSME-makes-second-investment-in-Jordan–USD-1-5-million-loan-to-FINCA-Jordan-SML-supports-entrepreneurs—— site.index..html_dir._siteid.67_nav._entryid.37_likecms.html
MicroCapital.org story, July 18, 2012, “MICROCAPITAL BRIEF: ‘SANAD Fund for MSME’ Loans $3m to Middle East Micro-Credit Company of Jordan,” http://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-loans-3m-to-middle-east-micro-credit-company-of-jordan/
MicroCapital.org story, June 1, 2012, “MICROCAPITAL BRIEF: ResponsAbility Loans $6.4m to Microfinance Institutions KMF of Kazakhstan, FINCA Jordan, FINCA Azerbaijan,” http://www.microcapital.org/microcapital-brief-responsability-loans-6-4m-to-microfinance-institutions-kmf-of-kazakhstan-finca-jordan-finca-azerbaijan/
MicroCapital Universe Profile: SANAD Fund for MSME
MicroCapital Universe Profile: FINCA Jordan
MicroCapital Universe Profile: FINCA International
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