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Press Releases

Frankfurt am Main and Bern, 2014-02-03

Switzerland invests EUR 5.5 million in SANAD and donates EUR 1.5 million to the Fund’s Technical Assistance Facility

Frankfurt am Main and Bern, 3 February 2014 – The SANAD Fund for MSME (SANAD) and its Technical Assistance Facility (TAF) announce they have received additional funding from Switzerland's State Secretariat for Economic Affairs (SECO). SECO has invested EUR 5.5 million into the junior tranche of SANAD’s debt sub-fund. In addition, SECO donated EUR 1.5 million to the SANAD Technical Assistance Facility (TAF), which will be used to provide tailored capacity building to the specific needs of SANAD's partner institutions. The new investment will strengthen the Fund’s capital base and facilitate its expansion in the target countries, particularly in SECO's priority countries Egypt and Tunisia. In addition to SECO’s contribution to this important source for capacity building in the region, the investment will have a significant impact on the development footprint of the Fund, facilitating more than 1,500 new loans provided to local micro, small and medium enterprises (MSMEs) in the region.

“We are delighted that SECO has joined SANAD as a strategic partner broadening the Fund’s investor base,” said Wolfgang Reuss, Chairman of SANAD’s Board of Directors. “This investment will support SANAD in facilitating access to finance for micro and small enterprises in our target region, ultimately increasing employment and supporting the Arab Spring.”

“SECO sees its SANAD investment as an important contribution to stimulate the provision of capital to MSMEs to spur economic growth in the MENA region and create jobs,” said Liliana de Sá Kirchknopf, Head of Private Sector Development.

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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 (the MENA region). As of year end 2013, the SANAD Fund had committed funding from SANAD shareholders of more than USD 120 million. 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 is comprised of 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 consisting of Finance in Motion GmbH, Frankfurt/Main and Oppenheim Asset Management Services S.à r.l., Luxembourg.


About SECO

SECO's Economic Cooperation and Development Division is responsible for the planning and implementation of economic cooperation and development activities with middle income developing countries, with countries of Eastern Europe and the Commonwealth of Independent States (transition countries). Through its interventions, SECO seeks to ease its partner countries' integration into the world economy and promote economic growth that is socially responsible as well as environmentally and climate-friendly. As part of private sector development within its Economic Cooperation and Development Division, SECO focuses on providing long-term corporate financing and helping to expand the range of financial products available to SMEs.

For more information, please visit http://www.seco-cooperation.admin.ch/index.html?lang=en


Media Contact SANAD

 

Media contact SECO

Xenia Tendyck
Phone: + 49 (0) 69/977 876 50-320
E-mail: press@sanad.lu
  Nicole Annette Mueller
External Relations and Event Coordinator
Economic Cooperation and Development
Phone + 41 31 324 09 10
E-Mail: nicole.mueller@seco.admin.ch
 

 
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/