The Sanad Fund for MSME (micro-, small and medium-sized enterprises), an initiative of the German development bank Kreditanstalt fur Wiederaufbau Entwicklungsbank that invests in financial institutions in the Middle East and North Africa, recently agreed to disburse a senior loan facility of USD 2 million to Palestine for Credit and Development, a microfinance institution (MFI) based in Palestine’s West Bank that is known as Faten in Arabic. Further details on the loan have not yet been released.
As of year-end 2011, Faten reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 29.4 million, return on assets (ROA) of 8.11 percent and return on equity (ROE) of 13.1 percent. As of September 30, 2012, it reports a gross loan portfolio of USD 31.7 million and 16,800 active borrowers. Faten does not accept deposits. As of 2012, Sanad had raised total investor commitments of USD 61 million, with USD 38 million in approved investments.
By Charlotte Newman, Research Associate
About Palestine for Credit and Development – Faten
Palestine for Credit and Development (Known as Faten in Arabic) is a microfinance institution based in the West Bank in Palestine. The organization’s mission is to “strengthen the economic base of Palestinian microentrepreneurs, particularly women, by providing sustainable financial services suited to their needs.” Established in 1999, FATEN also offers Islamic microfinance services, which employs concepts such as profit-sharing in lieu of charging interest. As of year-end 2011, FATEN reported to the Microfinance Information Exchange (MIX), the US-based nonprofit data provider, total assets of USD 29.4 million, return on assets (ROA) of 8.11 percent and return on equity (ROE) of 13.1 percent. As of September 30, 2012, it reports a gross loan portfolio of USD 31.7 million and 16,800 active borrowers. The institution does not accept deposits.
About Sanad Fund for MSME (Sanad)
Founded in August 2011, Sanad Fund for MSME provides medium- and long-term debt and equity financing to financial institutions in the Middle East and North Africa with the intent of strengthening local financial markets and the micro-, small and medium-sized enterprise (MSME) sector. It is an initiative of the German development bank Kreditanstalt für Wiederaufbau Entwicklungsbank, and it is funded by the German Federal Ministry of Economic Cooperation and the European Union. It is headquartered in Luxembourg. Sanad plans to focus on Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, the Palestinian Territory, Syria, Tunisia and Yemen. As of 2012, Sanad had raised total investor commitments of USD 61 million, with USD 38 million in approved investments.
Sources and Additional Resources:
Sanad Press Release: “Sanad Makes First Investment in Palestinian Territories with USD 2 million Loan to Faten,” http://www.sanad.lu/Press-Releases—Press-Releases—2013-02-12-SANAD-makes-first-investment-in-Palestinian-Territories-with-USD-2-million-loan-to-FATEN——_site.index..html_dir._siteid.67_nav.134_entryid.47_likecms.html
MicroCapital.org story, February 5, 2013, “MICROCAPITAL BRIEF: Sanad Fund for MSME to Loan $20m to Lebanon’s Bank Audi for Small and Medium-sized Enterprises in Middle East, North Africa,” https://www.microcapital.org/microcapital-brief-sanad-fund-for-msme-to-loan-20m-to-lebanons-bank-audi-for-small-and-medium-sized-enterprises-in-middle-east-north-africa/
MicroCapital.org story, March 14, 2012, “MICROCAPITAL BRIEF: responsAbility Invests $2m in Jordan’s Middle East Micro Credit Company (MEMCC), Palestine for Credit and Development (FATEN),” https://www.microcapital.org/microcapital-brief-responsability-invests-2m-in-jordans-middle-east-micro-credit-company-memcc-palestine-for-credit-and-development-faten/
MicroCapital Universe Profile: Palestine for Credit and Development (Faten)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Palestine+for+Credit+and+Development+%28FATEN%29
MicroCapital Universe Profile: Sanad Fund for MSME
http://microcapital.org/microfinanceuniverse/tiki-index.php?%20page=SANAD+Fund+for+MSME+%28SANAD%29
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