A senior unsecured loan of up to EUR 2 million to be provided in two equal tranches under the Western Balkans Women in Business Programme ("WB WiB") Phase II.
The proceeds of the Bank's investment will be used for on-lending to eligible women-led micro, small and medium enterprises in Kosovo in accordance with the Policy Statement.
ETI score: 68
The project contributes to the objectives of the WB WiB Phase II, supporting the Transition Impact qualities of Inclusive and Competitive:
Inclusive: The project will contribute to women's economic inclusion by supporting women-led MSMEs' access to finance and business advisory services, while demonstrating the business case for scaling-up lending to the women-led MSME segment.
Competitive: Transition impact is expected to derive from market expansion in line with the EBRD Financial Intermediaries Framework.
AGENCY FOR FINANCE IN KOSOVO
Agency for Finance in Kosovo ("AFK") is the fourth largest microfinance institution ("MFI") in Kosovo, organized as a non-governmental organisation ("NGO"). Its establishment was financed from contributions received through Mercy Corps, a US-based NGO. Operating since October 2000, AFK provides access to finance to micro and small entrepreneurs, especially in the rural areas.
EBRD Finance Summary
Total Project Cost
Risk Mitigation: AFK currently relies on wholesale borrowings from institutional investors and IFIs. Even though other cheaper financing options from these investors may be accessible, AFK values the long-term relationship with the EBRD as a financier; it provides comfort to the client with the commitment to develop further its practices and it is also expected to instill trust among other financiers of the client based on the EBRD's reputation and context-specific knowledge.
Knowledge, innovation, and capacity building: Under the WB WiB Phase II programme, EBRD offers a holistic support package that comprises, alongside the financing, TC and First Loss Risk Cover. Altogether, these components are expected to build up AFK's capacity to cater to the needs of women-led MSMEs, enhance the opportunities of women-led MSMEs themselves (through ASB support) and ultimately contribute to the alleviation of gender gaps in access to finance and know-how in the country.
Environmental and Social Summary
Categorised FI (ESP 2019). AFK is an existing client and has demonstrated compliance with PRs 2, 4 and 9 through its latest Annual Environmental and Social Report for 2021. AFK will be required to continue to comply with the EBRD's Environmental and Social Risk Management Procedures for Micro, SME and Corporate Loans, as well as the applicable PRs, and submit annual E&S reports to the Bank. AFK has appropriate staffing and risk management procedures in place to cover the requirements of MSME and WiB lines. AFK is required to apply its current E&S risk management process and ensure compliance of sub-projects with national EHS requirements. There will be no GET Share associated with this project.
Technical Cooperation and Grant Financing
FI TC: Up to EUR 2 million at the Programme level for beneficiaries under WB WiB Phase II, focusing on baseline assessment, capacity building, product development, marketing and outreach support. TC funds are provided by the Governments of Sweden.
Advice for Small Business TC: Up to EUR 3.5 million at the Programme level to support women-led MSMEs (including advisory services, training, mentoring, and network opportunities).
Non-TC: Risk sharing in the form of First Loss Risk Cover ("FLRC") of up to 10% of the Loan, with a cap of 70% for any single sub-loan. Non-TC funds for FLRC are provided by the EBRD Shareholders Special Fund.
Company Contact Information
+383 39 424 242
Agjencioni për Financim në Kosovë (AFK) Lidhja e Prizrenit No.1 Peje Republic of Kosovo
PSD last updated
30 Jun 2022
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Independent Project Accountability Mechanism (IPAM)
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