The SANAD Fund for MSME (SANAD) and Arab Tunisian Lease (“ATL”) signed a five-year senior loan agreement for the equivalent of USD 5 million in Euros.
The proceeds will allow ATL to extend its support to very small and small and medium enterprises (VSEs and SMEs), the powerhouse of the Tunisian economy.
Leasing companies in Tunisia account for about one-third of VSE/SME financing and play a key role in providing access to financing for a traditionally underserved segment in Tunisia.
As the country’s second largest leasing institution as at Q3 2015, ATL enjoys good brand recognition and a robust market position serving around 9,000 customers.
ATL targets professionals, VSEs and SMEs in various economic sectors and offers lease financing for equipment, light and heavy vehicles as well as real estate.
This SANAD facility will help ATL grow its portfolio by serving approximately 750 VSEs and SMEs.
As one of five SANAD partner institutions in Tunisia, ATL is the third leasing company in which the Fund is investing. Since 2013, SANAD has made six investments for a total of USD 53 million to support economic growth in Tunisia.
Wolfgang Reuss, Chairman of SANAD’s Board of Directors, said: “We welcome ATL’s commitment to expanding its leasing services to the ‘missing middle’ in Tunisia, and are pleased to join hands in supporting VSEs and SMEs gain access to finance and grow their businesses.”
“It is a great pleasure to start this partnership with SANAD, a fund well experienced in supporting financial institutions with a sound record in the Tunisian market. Given the alignment of our mission, we trust that this new established cooperation will be long-lasting and successful, for the benefit of our VSE and SME clients,” said Slimene Bettaieb, Chairman & Chief Executive Officer of ATL.