The proposed transaction under the NPL Resolution Framework (the "Framework") is for EBRD to subscribe to newly issued shares of AxFina Holding SA.
Through the proposed transaction, the Bank will support a promising NPL servicer in (i) furthering growth and consolidation of NPL servicing business in their existing markets, (ii) expanding the knowledge and expertise into new markets and (iii) streamlining and digitalising debt collections in our region for greater consumer and regulatory transparency
ETI score: 80
Resilient: Lack of servicing capacity in EBRD Region was identified as an important impediment for the development of the NPL market in many jurisdictions. The project will support an established NPL servicer in achieving scale (increased capacity) and expanding its operations to the new markets.
Competitive: The project will support one of the established NPL servicer in its strategy to expand its current operations, thereby fostering market competition.
AXFINA HOLDING SA
- AxFina Holding SA is a spin-off company (November 2019) of DDM Holding AG that previously served as its NPL servicer arm. AxFina services distressed assets and loans on behalf of banks and investment funds in Southern, Central and Eastern Europe.
EBRD Finance Summary
Up to EUR 6,240,000
Total Project Cost
Up to EUR 6,240,000
Resource mobilisation: The EBRD will play a key equity investor role in mobilizing resources for AxFina Holding SA.
Standard-setting: Through the project, AxFina Holding SA will benefit from EBRD's expertise in setting higher standards for corporate governance.
Environmental and Social Summary
Categorised FI (ESP 2019). AxFina Holding S.A. is a distressed debt servicer and a new partner to EBRD. The environmental and social due diligence has been carried during which AxFina has provided information on relevant group policies and its local application in Hungary, including human resource management, working conditions, health and safety management, and the debt collection process, which meet the requirements under PRs 2 and 4. ESD is still working with the client on the areas of identification and management of social risks in NPL portfolios as related to PR9, and in regards to the application of group policies in different jurisdictions. The client will need to apply relevant provisions from PR9 in as far as they relate to the identification, management and reporting on social issues in NPL portfolios. Axfina applies a group Code of Conduct which will need to be applied to the different national legal frameworks. AxFina will need to comply with EBRD's Performance Requirements 2 and 4, continue to carry out a social risk screening and management aligned with relevant provisions of PR9. AxFina and any companies it outsources to will need to continue to manage potential social impacts on borrowers by diligent application of its Code of Conduct and in line with any applicable national Codes of Conduct for NPLs. AxFina will need to submit annually to the EBRD a report in an agreed format on their compliance with the applicable PRs. There is no GET component associated with this project.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
22 Dec 2020
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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).
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