Deutsche Bank, a Germany-based financial services company, recently announced that it had raised USD 100 million from unspecified private investors for the European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV).
The funds will be used to place “long-term” investments in microfinance institutions (MFIs) for on-lending to micro-, small and medium-sized enterprises (MSMEs) as well as to low-income households in order to facilitate the purchase and modernization of housing in Eastern and Southeastern Europe.
As of year-end 2014, Deutsche Bank reported assets totaling EUR 1.71 trillion (USD 1.9 trillion). Deutsche Bank has mobilized approximately EUR 250 million (approximately USD 278 million) for EFSE since 2007. As of 2014, EFSE reported a gross loan portfolio of EUR 940.5 million (approximately USD 1 billion).
By Victor Mugo, Research Associate
About European Fund for Southeast Europe (EFSE)
The Luxembourg-based European Fund for Southeast Europe (EFSE) focuses on the development of local financial sectors in Southeastern Europe and parts of Central Asia. EFSE provides “long-term” funding for micro- and small enterprises as well as private households via partner retail institutions. EFSE also operates the EFSE Development Facility, which provides technical assistance, consulting and training services supporting capacity building within these partner institutions. EFSE was established in 2005 by Germany’s Kreditanstalt für Wiederaufbau (KfW), with the financial support of the German Federal Ministry for Economic Cooperation and Development (which is also known by its German acronym BMZ) and the EU’s European Commission. The fund 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. EFSE operates in 16 countries: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Georgia, Kosovo, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey, the former Yugoslav Republic of Macedonia. As of 2014, EFSE reported a gross loan portfolio of EUR 940.5 million (approximately USD 1 billion). As of September 2014, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.
About Deutsche Bank
Deutsche Bank was founded in 1870 in Berlin, Germany. As of 2015, the organisation is present in 70 countries, and it is headquartered in Frankfurt, Germany. It offers financial products and services including consumer banking, corporate banking, insurance, investment banking, mortgage loans, private banking, private equity, savings, asset management and wealth management. The bank also offers services including mergers and acquisitions, fund management, risk management through derivatives and origination, and sales of debt and equity for corporate and institutional clients. As of year-end 2014, Deutsche Bank had assets totaling EUR 1.71 trillion (USD 1.9 trillion).
Sources and additional resources
[1] Noodls: Deutsche Bank adds funding to EFSE microfinance fund http://www.noodls.com/view/B77B65FE579EBC3F41B857EA590D6513AC30C3E5?1308xxx1440682282
[2] 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
[3] MicroCapital Universe Profile: Deutsche Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Deutsche+Bank
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