Oesterreichische Entwicklungsbank AG (OeEB), Austria’s official development bank, recently pledged an investment of EUR 15.0 million (USD 18.75 million) to the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) based in Luxembourg. The investment is intended to stimulate the financing of micro- and small enterprises (MSEs) in southeast and Eastern Europe.
As of December 31, 2010, Oesterreichische Entwicklungsbank AG (OeEB) reported total assets of EUR 147 million (USD 196 million), with EUR 94.3 million (USD 125 million) invested in seven projects. Established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million).
By Mihaela Grindeanu, Research Associate
About Oesterreichische Entwicklungsbank AG (OeEB): Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official development bank of Austria since March 2008. OeEB provides long-term financing for the implementation of private sector projects in developing countries in an effort to promote sustainable development. OeEB also provides technical assistance in an effort to enhance the development impact of projects. In 2011, OeEB reported total assets of EUR 226.2 million (USD 282.5 million). The organization’s annual net profit amounted to EUR 849,000 (USD 1 million).
About the European Fund for Southeast Europe (EFSE): Established in 2005, the European Fund for Southeast Europe aims to foster economic development in southeastern Europe and parts of Central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. EFSE is privately managed, with Oppenheim Asset Management Services of Luxembourg acting as fund manager and Finance in Motion GmbH of Germany acting as fund advisor. As of June 30, 2011, EFSE has an outstanding investment portfolio of EUR 676 million (USD 982 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.
Sources and Additional Resources:
Efse.lu Press Release, “EFSE Annual Meeting 2012 in Tbilisi”, http://www.efse.lu/Press-releases—Details—2012-05-31-EFSE-Annual-Meeting-2012-in-Tbilisi——_nav.52_siteid.134_entryid.435_dir._likecms.html
MicroCapital.org story, June 10, 2012: “MICROCAPITAL BRIEF: European Fund for Southeast Europe Loans $8m to MF Banka a.d. Banja Luka, Microcredit Foundation EKI of Bosnia and Herzegovina”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-loans-8m-to-mf-banka-a-d-banja-luka-microcredit-foundation-eki-of-bosnia-and-herzegovina/#more-19075
MicroCapital.org story, May 11, 2012: “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Lends $23m to Inecobank of Armenia, Megabank of Ukraine, Partner MikroKreditna Fondacija Tuzla of Bosnia and Herzegovina”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-lends-23m-to-ineco-bank-of-armenia-megabank-of-ukraine-partner-mikrokreditna-fondacija-tuzla-of-bosnia-and-herzegovina/
MicroCapital.org story, February 4, 2012: “MICROCAPITAL BRIEF: Advans, International Finance Corporation (IFC), KfW Bankengruppe, FMO to Start La Fayette Microfinance Bank in Nigeria with $6.2m in Equity Investments”, https://www.microcapital.org/?s=Oesterreichische+Entwicklungsbank+AG+&x=0&y=0
MicroCapital Universe Profile: European Fund for Southeast Europe, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe Profile: Oesterreichische Entwicklungsbank AG (OeEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Oesterreichische+Entwicklungsbank+AG+%28OeEB%29
Oesterreichische Entwicklungsbank AG (OeEB): “OeEB a stable connection to emerging markets in 2011”, http://www.oe-eb.at/en/osn/NewsCenter/Pages/oeeb-stable-connection-2011.aspx
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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