SANAD Contributes to Enda Tamweel Capital Increase of TND 72 Million

26 April, 2018

Original source: Sanad

Enda Tamweel has successfully completed a reserved capital increase of 72 million Tunisian dinars. The development will enable Enda Tamweel to mobilize more debt financing in order to serve a greater number of microentrepreneurs in Tunisia, meet their growing microcredit needs, and contribute to the financial inclusion of populations excluded from the traditional financial system.

The amount was fully subscribed by six international investors: BIO (Belgium), PROPARCO (France), the SANAD Fund for MSME (Luxembourg), SIDI (France), TRIODOS Investment Management (Netherlands), and WWB Capital Partners (United States).

This investment once again attests to the interest shown by these international financial institutions in Enda Tamweel in particular and in the microfinance sector in Tunisia in general, and strengthens Enda Tamweel’s long-standing strategic partnership with these institutions.

The NGO Enda inter-arabe will remain the main shareholder of Enda Tamweel.

Essma Ben Hamida, Executive Director and co-founder of Enda Tamweel, said: “We have achieved our dream of seeing the small microcredit project launched in 1995 with USD 20,000 turn into a strong microfinance institution serving thousands of Tunisian women and men who were previously deprived of access to financial services.” She added, “This capital increase is part of pursuing the institution’s new development plan, launched in 2013 with the aim of consolidating its achievements and preparing it for future growth in order to contribute to economic development and social stability in Tunisia.”

Since pioneering microcredit in Tunisia in 1995, Enda has granted more than 2.8 million loans with an equivalent value of 3.3 billion Tunisian dinars to 730,000 Tunisian microentrepreneurs. With its network of 86 branches and 3 mobile branches employing a total of nearly 1,700 people, Enda Tamweel currently serves 337,000 microentrepreneurs across the country with its portfolio of around 510 million Tunisian dinars.

Michael Cracknell, Chairman of the Board of Directors and co-founder of Enda Tamweel, lauded the six international institutions that share the vision and social mission of Enda Tamweel and its founders. They are all convinced of the great potential of microfinance in Tunisia, especially provided proper regulatory conditions are ensured. “This international investment will have a direct impact on job creation across the country. We are proud to see the culmination of nearly 30 years of commitment and effort to serve those previously excluded from the financial system,” said Cracknell, thanking investors for their trust and support.

International investors also stated: “We are honored to be able to participate in Enda Tamweel’s enterprise. The strength of Enda Tamweel is its motivation and its very clear social project to enable the most disadvantaged of Tunisian society to invest in their future and realize their dreams. With the challenges facing Tunisia today, Enda Tamweel’s service, especially toward young people and women, is more relevant than ever – enabling them to participate in economic development and share the fruits of it.”

The capital increase will provide Enda Tamweel with the resources necessary to carry out its ambitious development plan and increase its microcredit grants to vulnerable parts of society in order to improve financial inclusion. Microentrepreneurship contributes significantly to the country’s economic development and to promoting the self-employment of young people and women in disadvantaged neighborhoods and rural areas.

To carry out this investment, Enda Tamweel was assisted by Mediterranean Corporate Finance (MCF) as lead advisor; Tunisie Valeurs and Cabinet Hedda-Ellouze-Felli as legal advisor; and Ajay Bhandoola, an international consultant.

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