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Press Releases

Frankfurt am Main and Ramallah, 2014-01-27

SANAD and Reef Finance sign senior loan facility for rural and agricultural financing in the Palestinian Territories

Frankfurt am Main and Ramallah, 27 January 2014 – The SANAD Fund for MSME (SANAD) signed a senior loan facility with Reef Finance, a microfinance institution operating in the West Bank and Gaza.

This USD 500,000 credit facility is aimed at providing financial services to rural clients, including farmers, agro processors and other small businesses. Reef Finance is the only microfinance institution in the Palestinian Territories dedicated to the rural and agricultural sector. The latter is of particular importance as it absorbs a large share of informal employment and raises incomes in rural areas while also strengthening food security. Coming from an international lender, the SANAD loan also helps Reef Finance diversify its refinancing sources.

“The new credit facility will have a strong development impact given its focus on underserved rural areas and agricultural clients. In view of the inherent challenges of the agricultural sector, SANAD will support its investment with the provision of relevant technical assistance,“ said Wolfgang Reuss, Chairman of SANAD’s Board of Directors.

“We are pleased to partner with SANAD to continue growing our loan portfolio in the Palestinian rural areas, and to strengthen our role as a leading provider of financing products and services to agricultural clients,” said Mr. Abu Dalo, General Manager of Reef Finance.

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About the SANAD Fund for MSME

Initiated and funded by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union in August 2011, the SANAD Fund for MSME (SANAD) provides medium- and long-term debt, guarantees, stand-by facilities and equity financing to commercial banks, microfinance institutions and other financial institutions in the Middle East and North Africa (MENA) region. The purpose of SANAD is to strengthen the local micro-, small and medium enterprise (MSME) sector and financial markets in line with the principles of responsible finance. Eligible countries are currently Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territories, Tunisia and Yemen. The Fund’s activities are supported by a technical assistance facility, which provides capacity-building support to partner institutions. SANAD is a public-private partnership. Its investor base comprises donor agencies, international financial institutions and institutional private investors, including the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ) and KFW Development Bank. SANAD is privately managed by a consortium of Finance in Motion GmbH, Frankfurt/Main and Oppenheim Asset Management Services S.à r.l., Luxembourg.


About Reef Finance

Established in 2007 as a private not-for-profit company, Reef Finance is a rural microfinance institution operating in the West Bank and Gaza. Reef Finance provides financial services to people living in rural areas and predominantly working in the agricultural sector through in-kind lending to cooperatives and individuals. Its mission is to “provide high quality financial services on a continuous basis to cooperatives and individuals in the Palestinian rural areas, with a qualified, trained and motivated team”.

For more information, please visit www.reef.ps


Media Contact SANAD

 

Media contact Reef Finance

Xenia Tendyck
Phone: + 49 (0) 69/977 876 50-320
E-mail: press@sanad.lu
  Mr. Mohammed Abu Dalo
General Manager
Phone: +97 (0) 22951071/84
E-mail: mabudalo@reef.ps
 

 
Initiated
|
Advised by
 
  • http://www.kfw-entwicklungsbank.de/
  • http://www.finance-in-motion.de/
 
 
Funded by
 
  • http://www.bmz.de/
  • http://ec.europa.eu/
  • http://www.kfw-entwicklungsbank.de/