The European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg, recently loaned USD 21.2 million in two segments to ProCredit Bank Bulgaria, a microfinance institution (MFI) that provides financing to micro-, small and medium-sized enterprises.
ProCredit Bank Bulgaria is a member of the ProCredit Holding group of banks, which operate in 21 countries in Eastern Europe, Latin America and Africa as of 2010 [2]. As of 2009, ProCredit Bank Bulgaria reports to the US nonprofit Microfinance Information Exchange (MIX) total assets of USD 771 million, a gross loan portfolio of USD 614 million, approximately 52,800 borrowers, return on assets (ROA) of 1.34 percent and return on equity (ROE) of 12.48 percent.
By Medha Ravi, Research Associate
About European Fund for Southeast Europe (EFSE):
Established in 2005, the European Fund for Southeastern 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 is privately managed, with Oppenheim Asset Management Services acting as its fund manager and Finance in Motion GmbH acting as fund advisor. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million (USD 775 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of April 2010.
About ProCredit Bank Bulgaria:
Established in 2001, ProCredit Bank Bulagria is a Bulgaria-based bank that provides financing to micro-, small and medium-sized enterprises. It has a network of 75 branches throughout the country as of 2010. A member of the ProCredit Holding group of banks, which operate in 21 countries in Eastern Europe, Latin America and Africa as of 2010, ProCredit Bank Bulgaria is wholly foreign-owned. As of 2009, ProCredit Bank Bulgaria reports to the US nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 771 million, a gross loan portfolio of USD 614 million, approximately 52,800 borrowers, return on assets (ROA) of 1.34 percent and return on equity (ROE) of 12.48 percent.
About ProCredit Holding:
ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have limited access to formal financial services. As of 2009 it had reported assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion).
Source and Resources:
[1] Data provided by European Fund for Southeast Europe (EFSE) to MicroCapital
[2] MicroCapital’s Microfinance Universe Profile: ProCredit Bank Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
MicroCapital.org story, February 2, 2011, “MICROCAPITAL BRIEF: European Fund for Southeast Europe Loans $10m to Megabank of Ukraine with Focus on Microfinance”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-loans-10m-to-megabank-of-ukraine-with-focus-on-microfinance/
MicroCapital.org story, December 20, 2010: European Fund for Southeast Europe Loans $19m to ProCredit Bank SA of Romania for Microfinance, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-loans-19m-to-procredit-bank-sa-of-romania-for-microfinance/
MicroCapital’s Microfinance Universe Profile: European Fund for Southeast Europe (EFSE), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital’s Microfinance Universe Profile: ProCredit Bank Bulgaria, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Bulgaria
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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