MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $11.6m to UniCredit Bank Serbia for Housing Purchases, Improvements

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently announced that it is loaning EUR 10 million (USD 11.6 million) to UniCredit Bank Serbia, a subsidiary of Italy-based financial services company UniCredit Group, for on-lending for housing purchases and home improvement projects. According to Claudio Cesario, the CEO of UniCredit Bank Serbia, the bank has “two options for our retail clients: to buy space for living, or invest in adapting and renovating flats according to their needs.”

According to Monika Beck, the Chairperson of the EFSE Board, “From the beginning of our partnership in 2013, the cooperation with UniCredit Bank Serbia successfully focused on supporting housing finance and home improvement – one of the EFSE’s key target sectors in Serbia. Hence we are pleased to further build on this success providing new funding to UniCredit Bank Serbia to finance private households for home improvement and purchases.”

UniCredit Serbia reported total assets of EUR 2.1 billion (USD 3 billion) as of 2013. UniCredit Group has 9,500 branches in 22 countries in Europe and total assets of EUR 846 billion (USD 1.17 trillion) as of 2013. As of June 2013, EFSE had an investment portfolio of EUR 774 million (USD 1 billion).

By Ananya Tiwari, Research Associate

About UniCredit Serbia

UniCredit Bank Serbia is a member of UniCredit Group, an Italy-based financial institution. UniCredit Group has 9,500 branches in 22 countries in Europe and reported total assets of EUR 846 billion (USD 1.17 trillion) as of 2013. For the year 2013, UniCredit Serbia reported total assets of EUR 2.1 billion (USD 3 billion).

About European Fund for Southeast Europe (EFSE)

The European Fund for Southeast Europe (EFSE) was established in 2005 by Kreditanstalt für Wiederaufbau Entwicklungsbank (KfW), a German development bank, with financial support from the German Federal Ministry for Economic Cooperation and Development (Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung) and the European Commission of the EU. EFSE seeks to aid economic development in southeastern Europe and parts of central Asia by supporting the provision of financial services to low-income households and micro- and small enterprises via local financial institutions. EFSE 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. As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion). As of 2014, EFSE holds a microfinance label from Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

Sources and Additional Resources

[1] EFSE Press Release, http://www.sentpressrelease.com//email/attachment/download?hash=0887ecf07c80028d09ce2ebaf5a88f04534449db0e06f6cf9f85d992cd88099b

MicroCapital, January 5, 2015, European Fund for Southeast Europe (EFSE) Loans $600k to Macedonian Microfinance Institution (MFI) Horizonti to On-Lend to Small-Scale Farmers, Rural Microentrepreneurs, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-600k-to-macedonian-microfinance-institution-mfi-horizonti-to-on-lend-to-small-scale-farmers-rural-microentrepreneurs/

MicroCapital, January 4, 2015, European Fund for Southeast Europe (EFSE) Loans $30m to Finansbank of Turkey to Support Micro-, Small, Medium-sized Enterprises (MSMEs), https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-30m-to-finansbank-of-turkey-to-support-micro-small-medium-sized-enterprises-msmes/

MicroCapital, October 31, 2013, European Fund for Southeast Europe (EFSE) Loans $31m to Komercijalna banka Beograd of Serbia, Microfinance Institution Patria Credit of Romania, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-31m-to-komercijalna-banka-beograd-of-serbia-microfinance-institution-patria-credit-of-romania/

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

MicroCapital Universe Profile: UniCredit Bank Serbia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unicredit+Bank+Serbia

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