MICROCAPITAL BRIEF: Gemeinschaftsbank für Leihen und Schenken (GLS) Invests $15m in Sanad Fund for MSME to Deploy in Middle East, North Africa

Gemeinschaftsbank für Leihen und Schenken (GLS), a German bank that focuses on investing in socially responsible and ecological projects, recently invested EUR 13 million (USD 14.5 million) in Sanad Fund for MSME (Micro-, Small and Medium-sized Enterprise), a Luxembourg-based public-private partnership that provides debt and equity financing in the Middle East and North Africa.

Wolfgang Reuss, the Chairman of Sanad’s Board of Directors, said: “The aim of GLS Bank to generate social, ecological and economic impact perfectly aligns with our mission to secure and create employment, to reduce poverty, and to foster an inclusive financial system across the MENA region. The investment of GLS Bank proves our ability to engage private investors to allocate development funding to the MENA region and provides clear evidence of the success of our public-private partnership fund structure.”

As of March 2016, Sanad has raised total investor commitments of USD 186 million. As of 2013, GLS had total assets of EUR 3.2 billion (USD 4 billion), deposits of EUR 2.8 billion (USD 3.5 billion), a loan portfolio of EUR 1.7 billion (USD 2.1 billion) and 165,000 customers.

By Kevin van den Brink, Research Associate

About Gemeinschaftsbank für Leihen und Schenken (GLS)

Gemeinschaftsbank für Leihen und Schenken (GLS) was established in 1974 by Wilhelm Ernst Barkhoff and Gisela Reuther under an “ethical” model that focuses on investing in socially responsible and ecological projects. Among other efforts, the bank finances sustainable energy programs, housing programs for people with low incomes, and the operations and capital needs of small and medium-sized enterprises (SMEs). As of 2013, GLS had total assets of EUR 3.2 billion (USD 4 billion), deposits of EUR 2.8 billion (USD 3.5 billion), a loan portfolio of EUR 1.7 billion (USD 2.1 billion) and 165,000 customers.

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 on investing in Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen with an emphasis on Egypt and Tunisia. As of March 2016, Sanad has raised total investor commitments of USD 186 million.

Sources and Additional Resources

[1] Sanad, Press Release, “GLS Bank invests EUR 13 million in SANAD to strengthen MSME in MENA region

MicroCapital Universe Profile: Gemeinschaftsbank für Leihen und Schenken (GLS)

MicroCapital Universe Profile: Sanad Fund for MSME

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