MICROCAPITAL BRIEF: Sanad Fund for MSME Loans $5m to The National Bank (TNB) of the Palestinian Territories for Microfinance

Sanad Fund for MSME recently loaned USD 5 million to The National Bank (TNB), a public-private partnership in the Palestinian Territories, to fund loans from TNB to low-income households as well as micro-, small and medium-sized enterprises (MSMEs). In addition to loans, TNB offers savings accounts and payment cards. The bank’s loans to MSMEs range in size from USD 25,000 to USD 100,000 with repayment periods of three to five years. Its personal loans can be as large as USD 75,000 with repayment schedules as long as seven years. The bank also offers Qudwati accounts which provide educators with various benefits including higher loan limits.

TNB was formed in 2012 by the merger of Al Rafah Microfinance Bank and the Arab Palestinian Investment Bank. As of 2016, the most recent year for which data is available, TNB reported total assets of USD 957 million. As of 2019, it has 18 branches and approximately 90,000 clients.

Sanad was founded in 2011 and is domiciled in Luxembourg. An initiative of German development bank Kreditanstalt für Wiederaufbau (KfW), it is funded 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 2016, the fund has raised total investor commitments of USD 186 million. It is advised by Germany’s Finance in Motion, which manages assets valued at EUR 1.6 billion (USD 1.7 billion) as of 2017.

By Tiannah Steele, Research Associate

Sources and Additional Resources

Sanad press release
https://www.sanad.lu/Press-Releases—Press-Releases—2018-12-20-SANAD-partners-with-The-National-Bank-to-support-MSMEs-and-low-income-households-in-Palestinian-Territo—_site.index..html_dir._siteid.67_nav.134_entryid.543_likecms.html

TNB homepage
https://www.tnb.ps

TNB annual report 2016
https://www.tnb.ps/downloads/1498132265.pdf

Sanad’s backing of Egypt’s Sandah
https://www.microcapital.org/microcapital-brief-arab-african-international-bank-aaib-sanad-fund-for-msme-launch-microfinance-institution-sandah-in-egypt/

Sanad fact sheets
https://www.sanad.lu/publications/fact-sheets

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