Holland Development Finance Company, a public-individual partnership as good known by its Dutch acronym FMO, lately selected Sasfin Bank of South Africa to alive the kickoff beneficiary of an emergency gamble-sharing facility intended to counter the impacts of the COVID-19 pandemic. The facility is office of FMO’s Nasira fund, which guarantees bank loans to “immature, female individual, every bit well equally migrant entrepreneurs inwards Sub-Saharan Africa besides countries neighbouring Europe.” Specifically, the design reimburses lenders to the extent that they lose more than 10 pct on their loans to members of the target groups. The understanding alongside Sasfin Bank has a term of seven years together with covers upward to USD 35 1000000 inwards loans.
“We accept always been committed to SMEs [steal-sized as good as medium-sized enterprises] as good equally, amongst Nasira, are right away in an 50-l meliorate place to stride upward back up to then many SMEs who argue to access finance. This facility is a major side by side step inwards expanding our digital B\\YOND Business Banking offering, becoming more than various together with inclusive every flake we launch to marketplace inward 2021,” said Michael Sasson, CEO of Sasfin Bank.
Separate from Nasira, FMO is every bit well lending Sasfin Bank ZAR 390 i yard 1000 (USD 25 meg) for a term of ii years.
Founded in 1951, Sasfin Bank is a member of Sasfin Holdings Limited, which is based in the metropolis of Johannesburg in addition to comprises Sasfin Bank, Sasfin Wealth in add-on to Sasfin Capital. As of June 2019, Sasfin Holdings Limited reported total assets of ZAR xiv.six billion (USD 941 meg).
Nasira was established inward 2018 under a four-twelvemonth understanding between FMO equally good as the European Union’s European Commission inwards the heart and soul of EUR 75 meg (USD 88 meg). Nasira’s emergency COVID-xix facility has been capitalized past times the European Union’s European Fund for Sustainable Development together with MASSIF, a fund that FMO manages for the Dutch government.
Established inwards 1970, FMO is 51-percent held past times the Dutch authorities inwards add-on to 49-percent past the private sector. The establishment industrial plant life toward the UN’s Sustainable Development Goals past times funding capacity development equally skilful as placing debt together with equity investments inward sectors such every bit agribusiness, fiscal institutions in addition to energy. During the one-half dozen months ending June 2020, FMO lost EUR 280 million (USD 330 one chiliad thou) on a total portfolio of EUR 12.7 billion (USD 14.ix billion).
By Kate Finster, Research Associate
Sources equally well every bit Additional Resources
Direct contact alongside FMO
FMO press release
Sasfin Bank homepage
Sasfin Holdings Limited 2020 annual written written report
Previous MicroCapital article on FMO
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