The European Fund for Southeast Europe (EFSE), a microfinance investment fund incorporated in Luxembourg, recently reported to MicroCapital that it has made debt investments worth a total of EUR 34 million (USD 49.7 million) in three banks that support micro-, small and medium-sized enterprises (MSMEs): Raiffeisen Banka Serbia, ProCredit Bank Macedonia and Mikrofin Banja Luka of Bosnia and Herzegovina.
In Serbia, EFSE is providing a long-term credit facility of EUR 25 million (USD 36.5 million) to Raiffeisen Banka Serbia, a bank that offers corporate, retail and investment banking in addition to supporting small and medium-sized enterprises (SMEs). The loan will be used to expand the bank’s home improvement loan programme, which helps borrowers finance home purchases, construction, renovations and enlargements. As of December 31, 2010, Raiffeisen Banka reported total assets of USD 2.55 billion.
In Macedonia, EFSE is providing ProCredit Bank Macedonia with a loan of EUR 2.5 million (USD 3.65 million) in addition to a local-currency loan of MKD 154 million (USD 3.65 million). ProCredit Macedonia, a “development-oriented full-service bank,” will employ the funds to grow its to micro- and small enterprise (MSE) loan portfolio. As of December 31, 2010, ProCredit Macedonia reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 266 million, a gross loan portfolio of USD 197 million, return on assets (ROA) of 12.3 percent, return on equity (ROE) of 4.32 percent and 25,800 active borrowers. ProCredit Macedonia also reports to the MIX total deposits of USD 183 million and 118,000 depositors. ProCredit Macedonia is a member of ProCredit Holding, a German banking group that consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.
Lastly, Mikrofin Banja Luka, a microfinance institution (MFI) operating in Bosnia and Herzegovina, will receive a loan of EUR 4 million (USD 5.84 million) to support lending to MSEs. As of December 31, 2010, Mikrofin reported to MIX total assets of USD 139 million, a gross loan portfolio of USD 123 million, ROA of 0.3 percent, ROE of 1.33 percent and 40,000 active borrowers.
As of March 31, 2011, EFSE has an outstanding investment portfolio of EUR 667 million (USD 941 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
By Rohan Trivedi, Research Associate
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 March 31, 2011, EFSE has an outstanding investment portfolio of EUR 667 million (USD 941 million). LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector, renewed EFSE’s label as of 2011.
About Raiffeisen Banka Serbia:
Raiffeisen Banka Serbia is a financial services provider that was founded in 2001 and has its headquarters in Belgrade, Serbia. Raiffeisen Banka Serbia has operations in corporate and retail banking, investment banking and services for small and medium-sized enterprises (SMEs). Raiffeisen Banka Serbia is a member of the Raiffeisen Bank International group, a subsidiary of Raiffeisen Zentralbank Österreich AG (RZB) which is a banking group with operations across Eastern Europe and Central Asia. As of December 31, 2010, Raiffeisen Banka Serbia’s website indicated total assets of USD 2.55 billion and total loans of USD 2.2 billion.
About ProCredit Bank Macedonia:
ProCredit Bank Macedonia, established in 2003 and based in Macedonia, is a deposit-taking microfinance bank. It focuses on lending to micro-, small and medium-sized enterprises (MSMEs). As of December 31, 2010, ProCredit Macedonia reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 266 million, a gross loan portfolio of USD 197 million, return on assets (ROA) of 12.3 percent, return on equity (ROE) of 4.32 percent and 25,800 active borrowers. ProCredit Macedonia also reports to the MIX total deposits of USD 183 million and 118,000 depositors. ProCredit Macedonia is a member of ProCredit Holding, a German banking group that consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.
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 December 31, 2010 it had reported assets of EUR 5.2 billion (equivalent to USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (equivalent to USD 4.8 billion).
About Mikrofin Banja Luka:
Mikrofin Banja Luka, established in 1999, is a microfinance institution (MFI) based in Bosnia and Herzegovina. It aims to “provide appropriate financial services to economically-active, low-income people that can make a profit and make it possible for them to become economically independent.” As of December 31, 2010, Mikrofin reported to the US-based nonprofit data provider Microfinance Information Exchange (MIX) total assets of USD 139 million, a gross loan portfolio of USD 123 million, return on assets (ROA) of 0.3 percent, return on equity (ROE) of 1.33 percent and 40,000 active borrowers.
Sources and Additional Resources:
[1] Press Release submitted by the European Fund for Southeast Europe (EFSE) to MicroCapital, June, 2011
MicroCapital.org story, July 6, 2011: “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $29m to Raiffeisen Bank Bosnia and Herzegovina”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-29m-to-raiffeisen-bank-bosnia-and-herzegovina/
MicroCapital.org story, July 4, 2011: “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE), Araratbank Sign $10m Loan Agreement for Micro and Small Enterprises (MSEs) in Armenia”, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-araratbank-sign-10m-loan-agreement-for-micro-and-small-enterprises-mses-in-armenia/
MicroCapital.org story, May 30, 2011: “MICROCAPITAL BRIEF: LuxFLAG Renews Label for MIVs From Absolute, BlueOrchard, EFSE, Finethic, Horus, KCD, ResponsAbility, Triodos, Wallberg”, https://www.microcapital.org/microcapital-brief-luxflag-renews-label-for-mivs-from-absolute-blueorchard-efse-finethic-horus-kcd-responsability-triodos-wallberg/
MicroCapital 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 Universe Profile: Raiffeisenbank Serbia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Raiffeisenbank+Serbia
MicroCapital Universe Profile: ProCredit Bank Macedonia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Bank+Macedonia
MicroCapital Universe Profile: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
MicroCapital Universe Profile: Mikrofin Banja Luka, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Mikrofin+Banja+Luka
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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