Finance in Motion wins fund management mandate for MSME fund in the MENA region
Frankfurt am Main, 7 January 2011 - Finance in Motion, in a consortium with Oppenheim Asset Management Services, has been appointed by KfW Entwicklungsbank (The German Development Bank) to provide concept development consultancy and fund management services to the SANAD Fund - in preparation - targeted at micro, small and medium enterprises (MSMEs) in the Middle East and North Africa (MENA) region. SANAD will facilitate the lending to local enterprises via partner financial institutions which will be supported by loans, guarantees or equity.
Depending on the results of a market study to be conducted by Finance in Motion, the company will support KfW in the further development and finalization of the fund concept, its launch, including its first closing, as well as the parallel set-up of a technical assistance facility. Fund management services offered by Finance in Motion to SANAD will comprise risk management, investment management, technical assistance management and other support services.
SANAD will refinance particularly small and medium-sized partner financial institution in the region which are not yet able to access commercial capital markets in sufficient ways. Refinancing instruments include medium to long-term loans primarily in local currency, subordinated loans to strengthen companies' capital base and partial guarantees that mobilize local liquidity through risk-sharing approaches. Complementary technical assistance is targeted in priority to support capacity building in the supported financial institutions as well as to ensure responsible finance and sustainable growth.
The Fund is expected to become operational by the end of the year 2011 with a first closing volume of approximately EUR 35 million.
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