MICROCAPITAL BRIEF: ATL Secures $12m from Sanad for SME Leasing in Tunisia During COVID-19 Pandemic

Tunisia-based Arab Tunisian Lease (ATL) recently secured a senior loan of EUR 10 million (USD 12 million) from Sanad Fund for MSME, a Luxembourg-domiciled investor in lenders to micro-, small and medium-sized enterprises (MSMEs), for leasing to small and medium-sized enterprises in Tunisia as they adjust to the COVID-19 pandemic.

Sanad Board Chair Dr Daniela Beckmann said, “Lockdowns and travel restrictions have taken a particular toll on entrepreneurs since the pandemic began. Specialized providers of small and medium enterprise finance like ATL provide critical resources for this important economic segment to maintain their operations in spite of the ongoing crisis. Sanad and its partners are here for local businesses in the long term…”.

ATL provides lease financing for equipment, vehicles and real estate, with a primary focus on transactions that involve real estate and equipment for MSMEs. Its lease terms range up to seven years. The organization was founded in 1993 by two organizations that remain ATL’s primary shareholders: Arab Tunisian Bank, the local affiliate of the UK-based Arab Bank; and Banque Nationale Agricole, which is controlled by entities of the Tunisian government.

Sanad, which means “support” in Arabic, was founded in 2011 by German development bank Kreditanstalt für Wiederaufbau (KfW). The fund makes equity and debt investments in microfinance institutions, leasing companies, banks and other financial intermediaries that in turn finance MSMEs. It is funded by US-based Calvert Impact Capital; the EU; Germany’s GLS Bank; and development finance institutions of the Austrian, Dutch, German and Swiss governments. Sanad invests in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of 2020, the fund had an outstanding debt portfolio of USD 232 million. It is advised by Germany’s Finance in Motion, which manages assets valued at EUR 2.5 billion (USD 2.7 billion) as of the same year.

By Aakansha Shenoy, Research Associate

Sources and Additional Resources

Sanad Fund press release
https://sanad.lu/latest-updates/sanad-and-arab-tunisian-lease-expand-financing-opportunities-for-smes-in-tunisia

Sanad homepage
https://sanad.lu/

ATL homepage
http://www.atl.com

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