SANAD Fund for MSME
Status: Completed investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO invests USD 15 million in the SANAD Debt Sub-Fund for MSME to support small businesses in the Middle East and North Africa (MENA). "SANAD" means "support" in Arabic. The Debt Sub-Fund seeks to promote stability in a challenging region by expanding financial inclusion for MSMEs that often have difficulties finding access to capital for starting or growing a business. SANAD loans to local financial institutions are on-lent to support MSMEs in multiple sectors, and the fund is currently examining expansions in areas such as agribusiness, housing, and youth and gender initiatives.
What is our funding objective?
FMO is providing financing to SANAD through an investment of USD 15 million in the senior tranche of the debt sub-fund, money that will be on-lent by local partners to MSMEs. The investment comes from the MASSIF Fund, which FMO manages on behalf of the Dutch Ministry of Foreign Affairs. Supporting SANAD is an important step for MASSIF to further support entrepreneurs and SMEs in this (conflict) affected part of the world.
Why do we fund this investment?
MASSIF provides much needed financial and non-financial resources to small businesses and micro-entrepreneurs by supporting local financial intermediaries and institutions that can contribute to their development. MASSIF invests in low income countries and fragile and conflict-affected states with special focus towards rural areas, women, youth and companies that are developing new innovative products and services for the so-called 'Base of the Pyramid'. Due to conflict and instability, the MENA region is a challenging region for investors. Financing in MENA is provided mainly to larger companies, while employment is largely driven by MSMEs. Given the developmental challenges resulting from the region’s current situation and the need for MSME financing, FMO has increased its activities in the region’s financial sector, to provide scarce financing for further economic, sustainable, and social development. The investment fits further efforts and activities of the Dutch Government to support economies in the MENA region, specifically in countries which deal with a strong influx of refugees.
More investments
| Date | Total FMO financing |
|---|---|
| 9/16/2024 | USD 12.50 MLN |
| 9/16/2024 | USD 12.50 MLN |
| 5/27/2024 | USD 6.06 MLN |
- Website customer/investment
- http://www.sanad.lu/
- Country
- Luxembourg
- Sector
- Financial Institutions
- Effective date
- 1/17/2017
- End date
- 5/24/2023
- Total FMO financing
- USD 9.09 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A