The Sanad Fund for Micro-, Small and Medium-Enterprise (MSME), a Luxembourg-based investment company that funds financial institutions in the Middle East and North Africa, has agreed to issue a senior loan facility worth USD 500,000 to Reef Finance, a nonprofit microfinance institution (MFI) that operates in the Palestinian Territories of West Bank and Gaza. Reef Finance intends to use the loan to provide financial services to rural clients, including farmers and small-business owners.
As of November 2013, Reef Finance reports USD 8.6 million in outstanding loans. Reef Finance does not accept deposits. Sanad Fund for MSME provides financial services in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria, Tunisia and Yemen. As of 2012, Sanad has raised total investor commitments of USD 61 million, with USD 38 million in approved investments.
By Meraj Husain, Research Associate
About Reef Finance
Reef Finance is a nonprofit, private microfinance institution (MFI) that is based in the Palestinian Territories of the West Bank and Gaza. The MFI focuses on providing financial services to rural clients. As of December 2012, Reef Finance reports total assets of USD 8.3 million, total revenues of USD 1.97 million and profits of USD 1.04 million. This organization does not accept deposits.
About Sanad Fund for MSME
Sanad Fund for 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. It 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 headquartered in Luxembourg. Sanad focuses in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Syria, Tunisia and Yemen. As of 2012, Sanad has raised total investor commitments of USD 61 million, with USD 38 million in approved investments.
Sources and Additional Resources
[1] Sanad Fund for MSME: “SANAD and Reef Finance sign senior loan facility for rural and agricultural financing in the Palestinian Territories,” http://www.sanad.lu/Press-Releases—2014-01-27-SANAD-and-Reef-Finance-sign-senior-loan-facility-for-rural-and-agricultural-financing-in-the-Palestinian-Territories——_site.index..html_dir._siteid.67_nav._entryid.160_likecms.html
[2] Reef Finance, “Financial Statements,” http://www.reef.ps/pdfs/financial%20report%202012%20eng.pdf
[3] Reef Finance, “Monthly Report November 2013,” http://www.reef.ps/pdfs/portfolio%20report%20en%2011-2013.pdf
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,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-loans-6m-to-enda-inter-arabe-of-tunisia-for-young-entrepreneurs-micro-small-medium-sized-enterprises-in-rural-areas/
MicroCapital, June 13, 2013, “Sanad Fund for MSME to Loan $2m to Al Majmoua of Lebanon for Microenterprises,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-2m-to-al-majmoua-of-lebanon-for-microenterprises/
MicroCapital Universe Profile: Reef Finance https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Reef+Finance
MicroCapital Universe Profile: Sanad Fund for MSME https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SANAD+Fund+for+MSME+%28SANAD%29
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROFINANCE PAPER WRAP-UP: “Sustainable Finance in the MENA Region;” by Natalia Realpe Carrillo, Alexander Reviakin; Published by Sanad Fund for MSME Technical Assistance Facility, HEDERA Sustainable Solutions
- MICROCAPITAL BRIEF: Bank of Africa, Sanad Fund Deploying $27m for SME Finance in Morocco
- MICROCAPITAL BRIEF: Sanad Fund for MSME Raises $26m from ASN Bank, Calvert Impact to Boost Financial Inclusion, Resilience in MENA
- MICROCAPITAL BRIEF: Reefy Microfinance Borrows $6.5m from EBRD for Youth-led MSMEs in Egypt
- SPECIAL REPORT: Investors, MFIs Continue to Wrestle with Sustainable Finance Disclosures Regulation (SFDR) #EMW2023