SANAD Fund provides BLC $5 million to expand SMEs credit programs
BLC Bank has signed a loan agreement of $5 million with the Luxembourg-based SANAD Fund for micro, small, and medium enterprises (MSMEs).
According to a joint news statement, the funding will enable BLC to expand its small and medium enterprise (SME) loan program.
“SANAD is pleased to commence a long-term partnership with BLC Bank and to collaborate with such a dedicated SME Bank in expanding lending to small enterprises,” said the Chairman of the Board of Directors of the SANAD Fund, Wolfgang Reuss.
The SANAD Fund provides debt and equity financing to commercial banks and other financial institutions in the MENA region that serve micro, small, and medium enterprises. Its operations will initially be focusing on Lebanon, Egypt, Jordan, and Tunisia but will later expand into other MENA countries.
Enterprises would receive favorable loans at market conditions through partner financial institutions in these countries, which refinance the loans through SANAD.
SANAD was launched in August 2011 with an initial capital of €30 million ($39 million). It was initiated by the German Development Bank through funding from the German Ministry for Economic Cooperation and Development (€20 million) and the European Union (€10 million). The fund is open to public and private donor institutions, international financial institutions, and investors. It is privately managed by a consortium of two specialized German firms, Finance in Motion and Oppenheim Asset Management Services.
Date Posted: Jan 04, 2012