MICROCAPITAL BRIEF: Jordan Trade Facilities Company Borrows $5m for MSMEs from Sanad Fund

Sanad Fund for MSME, a Luxembourg-based investor in organizations serving micro-, small and medium-sized enterprises (MSMEs), recently agreed to loan the equivalent of USD 5 million in Jordanian dinar to the Jordan Trade Facilities Company (JoTF). The investment is intended to provide liquidity to MSME clients of JoTF as they adjust to the COVID-19 pandemic. Founded in 1983, JoTF “facilitates selling commodities through installments.” The firm has five locations in three cities.

Sanad was founded in 2011 by German development bank Kreditanstalt für Wiederaufbau (KfW). It is funded by Germany’s GLS Bank; the EU; and development finance institutions of the Austrian, 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 2020.

By Tejas Gumudavelly, Research Associate

Sources and Additional Resources

Sanad press release
https://sanad.lu/events-press/sanad-loans-usd-5-million-in-local-currency-to-jordan-trade-facilities-company-to-boost-small-business-finance

JoTF profile on LinkedIn
https://www.linkedin.com/company/jordan-trade-facilities-company-p-l-c/

Sanad homepage
https://sanad.lu/

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