The SANAD Fund Joins Forces with IFC and PROPARCO in USD $65 Million Financing Agreement with Bank of Palestine to Support SME Growth Amid Economic Recovery

Luxembourg August 27th, 2024 A consortium of leading finance institutions came together and signed a USD 65 million financing agreement with the Bank of Palestine today. The SANAD Fund for MSME’s along with the International Finance Corporation (IFC) and PROPARCO, the investment arm of the French Development Agency, signed the agreement which aims to support the bank's initiatives to help economic recovery in Palestine, with a particular focus on small and medium enterprises (SMEs).  

The Palestinian economy is currently experiencing a slowdown due to the ongoing conflict in Gaza. SMEs, which constitute 85% of economic activity in Palestine, have been hit hardest, necessitating additional liquidity and financing. Recognizing the critical role of SMEs in the Palestinian economy, the IFC is contributing USD 35 million (USD 25 million from IFC’s own account - plus blended finance which includes a USD 6.5 million loan from IFC’s Global Small and Medium Enterprises Finance Facility and a USD 3.5 million loan from IFC’s MENA Private Sector Development Program), PROPARCO USD 20 million, and SANAD USD 10 million to the consolidated loan. This loan will provide the Bank of Palestine with essential liquidity to finance SME activities during this crucial recovery phase.  

SANAD's involvement continues to tangibly demonstrate its long-term dedication to empowering SMEs and promoting inclusive financial landscapes in the MENA region.  

“Supporting SMEs is vital for economic stability and growth, especially in challenging times,” said SANAD Board Chairperson Dr. Daniela Beckmann. “The SANAD Fund's contribution underscores our commitment to fostering inclusive financial ecosystems and empowering small businesses in Palestine. We believe this partnership will help to drive significant, positive change and aid in the region's economic recovery.”  

Hashim Shawa, Chairman of Bank of Palestine said: “Bank of Palestine has championed the financing of the SME sector and remains committed to the well-being of this sector and its clients. The financing credit line by the international consortium of IFC, PROPARCO and SANAD is an important financing tool equipping the bank with liquidity and the long-term ability to provide needed financing for a vital economic sector. The health of this sector would enable the real economy to revive, recover and grow. We are thankful for this partnership with the DFIs that came together and in record time mobilized this financing tool at a very critical period facing the Palestinian economy.”  

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About SANAD   
The SANAD Fund for MSME finances micro, small, and medium enterprises and low-income households in the Middle East and North Africa and selected countries in sub-Saharan 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.  

An impact investment fund advised by Finance in Motion, 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; the Dutch development bank FMO; and Calvert Impact Capital.  

For more information on the SANAD Fund for MSME, please visit: www.sanad.lu    

About Finance in Motion    
Finance in Motion is a global impact asset manager focused exclusively on sustainable development in emerging markets and developing economies. The company structures, manages, and advises impact investment funds that bring together public and private investors to address climate change, strengthen biodiversity conservation, foster the sustainable use of natural resources, improve livelihoods, and promote economic opportunities.  

For more information, please visit us at: www.finance-in-motion.com    
You can also follow us on X @financeinmotion and on LinkedIn  

About Bank of Palestine  
Founded in 1960, based in Ramallah, BANK OF PALESTINE - BOP - is a universal bank, under the supervision of the Palestine Monetary Authority. With total assets of USD 7.126 billion, and a market share of more than a third of the sector in terms of customer deposits and credit facilities, BOP is the first national bank among 13 financial institutions operating in Palestine. With a network of 101 branches spread across the country, the leading local banking network, the bank serves more than 900,000 customers -Retail, Corporates, SMEs and Public Sector- through a diversified range of services - Retail banking, Corporate banking, Digital & Mobile banking - in addition to subsidiary activities. BOP is the leader in lending to SMEs and a main contributor to financial inclusion, sustainability and entrepreneurship. 

Media contact  
SANAD  
Nusha Westhoff 
Marketing & Communications   
Phone: +49 69 271 035-789   
Email: press@sanad.lu  

Bank of Palestine  
Catherine Halteh 
Phone: +972599390429 
Email: Catherine.Halteh@bankofpalestine.com