SANAD and Solifac partner to expand financing options for MSMEs in Lebanon
Luxembourg and Beirut, December 30, 2018 – The SANAD Fund for MSME (SANAD) has provided a loan of USD 5 million to Société Libanaise de Factoring (Solifac) to boost the company’s financing offer to micro, small, and medium enterprises (MSMEs) in Lebanon.
The first and only factoring company to be established in the country, Solifac is actively engaged in expanding its focus on MSMEs – a sector whose access to financing can be limited by the lack of collateral often demanded by commercial banks. Factoring can help bridge short-term liquidity gaps by providing tailor-made solutions for this target group. By supporting Solifac in broadening its outreach and services to MSMEs, SANAD aims to increase financial inclusion in the country and contribute to the overall success of this integral segment of the Lebanese economy.
Established in 2011, the SANAD Fund for MSME finances micro, small and medium enterprises and low-income households in the Middle East and North Africa via qualified local lenders. SANAD thereby fosters economic development and job creation – including youth employment – agriculture, affordable housing, and innovations in finance and financial technologies. SANAD strives to meet these goals by providing debt and equity financing to its local partners. The SANAD Technical Assistance Facility multiplies the fund’s development impact and outreach through capacity-building with partner institutions, developing financial infrastructures according to the principles of responsible finance and conducting much required R&D. SANAD’s investors include the KfW Development Bank, which initiated the fund; the German Federal Ministry for Economic Cooperation and Development (BMZ); the European Union; Switzerland’s State Secretariat for Economic Affairs (SECO); OeEB, the Development Bank of Austria; Germany’s GLS Bank and GLS Treuhand; and the Dutch development bank FMO. A public-private partnership, the fund is advised by Finance in Motion GmbH, Frankfurt am Main, Germany. For more information, please visit: www.sanad.lu
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