SASFIN BANK LIMITED NASIRA PORTFOLIStatus: Approved investment
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Who is our customer
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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.
- South Africa
- Financial Institutions
- Effective date
- Total FMO financing
- ZAR 559.58 MLN
- FMO NV
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)