Project description
and objectives:
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The European Fund for Southeast Europe (“EFSE”) will be a privately managed
public/private investment fund which will provide financing for micro, small
and medium-sized enterprises (“MSMEs”), as well as housing and rural finance,
through financial intermediaries in a number of countries in Southeast Europe.
The EFSE will initially provide financing to Bosnia and Herzegovina, Serbia
and Montenegro, and Kosovo, and may expand to other Southeast European
countries.
EFSE will have equity funding from the existing donor funds from the European
Commission, Bundesministerium fuer wirtschaftliche Zusammenarbeit und
Entwicklung, Swiss Agency for Development and Cooperation and the Netherlands
Development Finance Company. Mezzanine financing will be provided by EBRD,
KfW, IFC and FMO. And the private sector will be providing financing at the
senior debt level.
The fund will be managed by an experienced private investment manager.
The objectives of the fund are to:
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Provide development finance in Southeast Europe through the local financial
sector, focusing primarily on the needs of MSMEs:
Contribute
to strengthening the financial sector
Deliver MSME, rural and
housing development products in Serbia & Montenegro, BiH and Kosovo
Gradually
expand its geographical reach in Southeast Europe and develop its products
through co-financing and leveraging;
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Attract additional private sector investors to Southeast Europe through
investment in the Fund.
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Sub-projects:
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Transition impact:
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Transition impact: The transition impact of the proposed investment will arise
mainly from the following two aspects:
(i) Supporting entrepreneurs: the Fund is another tool for further promoting
the growth of the grass-roots sector in these countries.
(ii) Market deepening and broadening: within 1-2 years the Fund intends to
finance around 20-30 financial intermediaries providing EUR 2-4 million to
each one. This will enable commercial banks and MFIs to expand their product
range, providing loans to MSMEs, for housing and in certain cases targeting
clients in rural areas.
(iii) Demonstration effect: Commercial financing is rarely available to local
institutions due to perceived high risks. Successful lending will attract
other foreign investors to the region and the sector.
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The client:
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Commercial banks, microfinance institutions and other financial intermediaries.
The Fund will be managed by a private Investment Manager, selected through an
international tender process.
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EBRD finance:
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Commercial banks, microfinance institutions and other financial intermediaries.
The Fund will be managed by a private Investment Manager, selected through an
international tender process.
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Total project cost:
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EUR 212.1-257.1 million for the first closing.
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Environmental impact:
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The fund will be required to adopt and implement environmental risk management
procedures in accordance with the EBRD Environmental Procedures for Small and
Micro Loans, which will include EBRD’s Environmental Exclusion and Referral
List. Sub-borrowers will be required to comply, at a minimum, with national
standards for environment, health, safety and labour.
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Technical
cooperation:
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EUR 2 million out of the initial closing will be set aside for a development
facility to provide borrowers with technical assistance as needed. The
facility will be replenished annually from the net income of the Fund (up to
0.1% of annual net income).
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mike Taylor, Senior Banker, Group for Small Business
Telephone: 0044 207 338 7101
Email: taylorm@ebrd.com
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EBRD contact:
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Lilit Davoyan, Operation Leader: davoyanl@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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