The SANAD Debt Sub-Fund (DSF) provides market-based financing through debt instruments and guarantees to qualified and eligible partner institutions. These partners then on-lend to micro, small, and medium enterprises (MSMEs) in the Middle East and North Africa (MENA). The DSF offers a variety of investment instruments which include, but are not limited to, the following:
One of the unique features of SANAD is the internal currency hedging facility that allows the fund to offer loans to partner institutions in local currency. This is a key component of the DSF’s mission and part of SANAD’s commitment to responsible finance: Enabling partners to borrow in the local currency empowers those institutions with limited access to hedging facilities – particularly microfinance institutions – to focus on their impactful work. For more information on DSF’s impact, investments, and partner institutions, please click here.
The SANAD Equity Sub-Fund I (ESF I) and Equity Sub-Fund II (ESF II) provide equity financing to qualified and eligible partner institutions that serve the needs of micro, small, and medium enterprises (MSMEs) in the Middle East and North Africa (MENA). The objective of ESF I and ESF II is to support the development of financial systems by acting as a catalyst for the creation and expansion of institutions that address the “missing middle” in underserved geographic areas, and to promote innovative products and modes of financing. ESF I and ESF II are well positioned to carry out this objective by investing in regulated and non-regulated partner institutions using a variety of investment instruments. These include, but are not limited to, the following:
One of the unique features of SANAD’s Equity Sub-Funds is their ability to invest in existing partner institutions as well as to actively support the formation of greenfield ventures for addressing underserved segments and geographic areas. The Equity Sub-Funds can also invest in investment companies or equity financing vehicles that provide equity financing to MSMEs. For more information on the ESFs’ impact, investments, and partner institutions, please click here.
SANAD takes a holistic approach to its mission by combining financing with technical assistance. Rapidly growing populations and limited opportunities for employment across the region make entrepreneurship an important avenue toward establishing stable livelihoods for many. Through targeted nonfinancial support, SANAD helps create an enabling environment for entrepreneurs in the Middle East and North Africa (MENA).
The SANAD Technical Assistance Facility (TAF) works closely with partners to conduct projects that equip the fund’s beneficiaries with the knowledge and tools necessary to best serve – and improve the potential of – entrepreneurs. The TAF also develops the capacity of the financial sector across the region, and in some cases works directly together with entrepreneurs to help them succeed in their business.
The SANAD TAF is an independent structure within the fund and a fiduciary arrangement under Luxembourg law. It is overseen by the Technical Assistance Facility Committee, which represents the TAF’s donors, and is managed by Finance in Motion. The TAF receives donations from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union, along with additional donations from Switzerland´s State Secretariat for Economic Affairs (SECO), the Austrian Development Bank (OeEB), and the Dutch Development Bank FMO.