Project detail - SASFIN BANK LIMITED NASIRA PORTFOLI

SASFIN BANK LIMITED NASIRA PORTFOLI

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Who is our client

Sasfin Bank Ltd. is a commercial bank which specialises in asset backed lending to SMEs. It was established as a family-owned textile importer in 1951 and shifted towards providing trade finance in 1970. Sasfin obtained its banking license and registered as a commercial bank in 1999. Sasfin Bank is fully owned by Sasfin Holdings Limited which obtained a listing on the JSE in 1987. The Bank provides secured loans to SMEs in the form of office and capital equipment leases, trade finance, debtor finance and commercial property finance.

Funding objective

While FMO's mission is to empower entrepreneurs across the developing world, not everyone benefits equally from the processes that lead towards economic and social development. This is especially true for female, young and migrant entrepreneurs who are often at a detrimental position when it comes to accessing financial services to develop their businesses. The NASIRA guarantee seeks to address these inequalities by encouraging our partners to increase lending to these segments and contributing to inclusive development. COVID-19 affected businesses will also benefit from the NASIRA guarantee.

Why we fund this project

FMO chose Sasfin as it is is one of our key longstanding and trusted partners in South Africa. The bank’s SME drive, genuine focus on financial inclusion and innovative spirit made it a suitable candidate for this first NASIRA guarantee.

Environmental and social rationale

No significant E&S risks were identified in connection with the new transaction. Sasfin remains a category FI-B client with a well-functioning Environmental and Social Management System.

Region
Africa
Country
South Africa
Sector
Financial Institutions
Signing date
9/30/2020
Total FMO financing
ZAR 559.58 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B