MICROCAPITAL BRIEF: “SANAD Fund for MSME” Loans $3m to Middle East Micro-Credit Company of Jordan

SANAD Fund for MSME, a Luxembourg-based investment fund, has invested in Jordan for the first time, with a synthetic local currency loan equivalent to USD 3 million disbursed to Middle East Micro-Credit Company (MEMCC), a microfinance institution (MFI). Under the synthetic loan structure, MEMCC will repay the loan in a fixed amount of Jordanian dinar rather than incurring foreign exchange risk. The loan will allow MEMCC to expand its lending services to micro- and small enterprises. SANAD will also provide technical assistance to aid MEMCC in managing social and environmental risks.

US-based nonprofit CHF International, a partner of MEMCC, reported to MicroCapital that MEMCC holds a gross loan portfolio of USD 24.9 million and serves approximately 17,540 active borrowers as of May 2012. As of August 2011, SANAD had raised total investor commitments of USD 61 million, with USD 11 million approved investments.

By Mihaela Grindeanu, Research Associate

About Middle East Micro Credit Company (MEMCC): Established in 2003 in Jordan, Middle East Micro Credit Company (MEMCC) is a for-profit development finance institution that operates under the US-based nonprofit CHF International. MEMCC provides business loans to micro-, small, and medium-sized enterprises, as well as home improvement loans to low-income families. US-based nonprofit CHF International, a partner of MEMCC, reported to MicroCapital that MEMCC holds a gross loan portfolio of USD 24.9 million and serves approximately 17,540 active borrowers as of May 2012.

About SANAD Fund for MSME (SANAD): 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.

Sources and Additional Resources:

Sanad.lu Press Release: “SANAD Fund for MSME makes first investment in Jordan – US$ 3 million loan to Middle East Micro-Credit Company”, http://www.sanad.lu/Press-Releases—2012-07-05-SANAD-Fund-for-MSME-makes-first-investment-in-Jordan—–US–3-million-loan-to-Middle-East-Micro-Credit-Company——_site.index..html_dir._siteid.67_nav._entryid.33_likecms.html

MicroCapital.org story, January 5, 2012: “MICROCAPITAL BRIEF: “SANAD Fund for MSME” to Loan $5m to BLC Bank of Lebanon for On-Lending to Small and Medium-Sized Enterprises”, https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-5m-to-blc-bank-of-lebanon-for-on-lending-to-small-and-medium-sized-enterprises/

MicroCapital.org story, June 15, 2012: “MICROCAPITAL BRIEF: ResponsAbility Loans $4.1m to ACLEDA Laos, Middle East Micro Credit Company of Jordan”, https://www.microcapital.org/microcapital-brief-responsability-loans-4-1m-to-acleda-laos-middle-east-micro-credit-company-of-jordan/

MicroCapital Universe Profile: Middle East Micro Credit Company (MEMCC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Middle+East+Micro+Credit+Company+%28MEMCC%29#Description_140_word_limit_

MicroCapital Universe Profile: SANAD Fund for MSME (SANAD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SANAD+Fund+for+MSME+%28SANAD%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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