MICROCAPITAL BRIEF: Sanad Fund for MSME (Micro-, Small and Medium-sized Enterprise), Arab Tunisian Lease Partner to Mobilize $5m for 750 Firms in Tunisia

The 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, and Arab Tunisian Lease (ATL), a Tunisia-based company that provides lease financing for equipment, vehicles and real estate, signed a senior loan agreement for USD 5 million to support micro-, small and medium-sized enterprises (MSMEs) in Tunisia. This funding is slated to expand ATL’s portfolio by an additional 750 MSMEs.

The Chairman of Sanad’s Board of Directors, Wolfgang Reuss, said, “We welcome ATL’s commitment to expanding its leasing services to the ‘missing middle’ in Tunisia, and are pleased to join hands in supporting VSEs [very small enterprises] and SMEs gain access to finance and grow their businesses” [1].

ATL was founded in 1993 as an initiative of the Arab Tunisian Bank (ATB), the Tunisian affiliate of the London-based Arab Bank, and Tunisia’s Banque Nationale Agricole (BNA) [1]. Under Tunisian law, ATL is a limited company with capital of TND 25 million (USD 12.4 million) as of December 2015. ATL serves approximately 9,000 clients.

Sanad is an initiative of the German development bank Kreditantalt Fur Wiederaufbau that focuses on Algeria, Egypt, Iraq, Tunisia and other countries in the Middle East and North Africa. This is Sanad’s third partnership with a leasing company.

By Meredith Steih, 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 Arab Tunisian Lease (ATL):

Arab Tunisian Lease (ATL) is a Tunisia-based leasing company that provides lease financing for equipment, vehicles and real estate, with a primary focus on transactions that involve property and equipment for micro-, small and medium-sized enterprise (MSMEs). The organization was founded in 1993 as an initiative of the Arab Tunisian Bank (ATB), the Tunisian affiliate of the London-based Arab Bank, and Tunisia’s Banque Nationale Agricole (BNA) [1]. Under Tunisian law, ATL is a limited company with a capital of TND 25 million (USD 12.4 million) as of December 2015. ATL serves approximately 9,000 clients.

Sources and Additional Resources

MicroCapital Universe Profile: Sanad Fund for MSME

MicroCapital Universe Profile: Arab Tunisian Lease (ATL)

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