Enterprise Expansion Fund II



Project number:


Business sector:

Equity funds

Notice type:


Environmental category:


Approval date:

10 Nov 2021



PSD disclosed:

06 Oct 2021

Project Description

An equity investment of up to EUR 20.0 million and a co-investment line in favour of the Enterprise Expansion Fund II Western Balkans ("ENEF II" or the "fund"), a compartment of the Enterprise Expansion and Impact Platform SA SICAV RAIF (the "platform"), a reserved alternative investment fund ("RAIF") to be registered in Luxembourg and supported by the Western Balkans Enterprise Development and Innovation Facility ("WB EDIF" or "EDIF"). ENEF II will provide equity, quasi-equity and different types of debt financing to growing local SMEs and mid-caps in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia. The EBRD will serve as investment advisor to the fund.

ENEF II will continue the activities of the Enterprise Expansion Fund that was launched under the WB EDIF in 2014 and managed to invest in 16 companies by the end of its investment period in July 2020.

Project Objectives

To fill the market gap for equity, quasi-equity and different types of debt financing to local SMEs and mid-caps in the Western Balkans and provide extensive pre- and post-investment support to the fund's investee companies, including on identifying and addressing Environmental, Social and Governance ("ESG") risk and opportunities.

Transition Impact

ETI score: 67

The fund will contribute to the "resilient" transition quality by increasing the availability of equity and quasi-equity capital as an alternative source of funding and the "competitive" transition quality by supporting its investee companies in dealing with Environmental, Social and Governance risks and opportunities, among other forms of post-investment assistance.

Due to the co-investment arrangement between the fund and the EBRD, the transition impact of individual projects will be assessed on a case-by-case basis and additional transition qualities may be also targeted. 

Client Information


The Enterprise Expansion Fund II Western Balkans will be set up as a compartment of the Enterprise Expansion and Impact Platform SA SICAV RAIF, a reserved alternative investment fund, which will be registered in Luxembourg as a corporation (societe anonyme) and administered by IQEQ, an Alternative Investment Fund Manager, regulated by the Commission de Surveillance du Secteur Financier. The minimum size of the compartment is set at EUR 40 million, the maximum size - at EUR 75 million. First closing is expected in Q4 2021.

EBRD Finance Summary

EUR 20,000,000.00

EBRD will subscribe to class A ordinary shares in the Fund (see below).

Total Project Cost

EUR 74,500,000.00

ENEF II will raise up to EUR 75 million of capital from the EBRD, the EC (through the EIF), other Development Finance Institutions and investors. The Fund will have two classes of ordinary share classes: a senior one (class A) for up to EUR 47.5 million and a subordinated one (class B) for up to EUR 27.5 million. The class B shares will provide first loss risk cover to the class A shares and will be subscribed to by the EIF (on behalf of the EC) and KfW.


The Bank's participation as an investor, co-investor and investment advisor is essential for ensuring the success of the fund. This is due to the lack of established fund managers covering the whole Western Balkans region as well as the limited interest of local financial institutions in participating in such funds. The extensive experience and presence on the ground of the EBRD allows to attract other investors and to structure a fund that can fill in the market gap and focus on delivering Environmental, Social and Governance impact and demonstration effects.

Environmental and Social Summary

The platform itself is treated as a framework project and hence no categorisation is assigned. Sub-projects will be categorised and appraised on a case-by-case basis. Independent environmental and social studies will be carried out when necessary, with assistance from external consultants, to fully understand all environmental and social related liabilities and risks associated with a company's operations, as well as to develop and agree an environmental and social action plan as required. The due diligence process will also be used to identify opportunities for environmental and social improvements and appropriate measurement metrics to track implementation of the agreed measures. Companies will be required to comply with the Bank's Performance Requirements including both national and EU standards for environment, health, safety and labour management and provide the Bank with an annual environmental report on environmental, health and safety issues.

Technical Cooperation and Grant Financing

ENEF II will benefit from up to EUR 9 million of technical cooperation funding provided by the EC (EUR 7 million) and Italy (EUR 2 million) for the purposes of: a) Pre-investment support, including a systematic screening of the ESG profile of investee companies and potential material areas for improvements; b) Post-investment support, including the implementation of action plans covering material ESG issues; c) Business development and staffing; and d) Covering set-up costs. 

Company Contact Information

Nikolay Angelov
EBRD, One Exchange Square, EC2A 2JN, London, the United Kingdom

PSD last updated

06 Oct 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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