MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $4.9m to Banka Respublika of Azerbaijan, $3.2m to ProCredit Bank Bosnia and Herzegovina

The European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) based in Luxembourg, recently made a loan of USD 4.9 million to Banka Respublika Open Joint Stock Company, a private Azerbaijani bank. Further information on the transaction and financial information for Banka Respublika is unavailable.

Similarly, EFSE made a EUR 2.5 million (USD 3.2 million) loan to ProCredit Bank of Bosnia and Herzegovina (PCB BiH), a microfinance institution (MFI) that is part of Germany-based ProCredit Holding. The money will be used to provide financing to micro- and small enterprises. As of 2011, PCB BiH reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 205 million, a gross loan portfolio of USD 163 million, and deposits of USD 139 million. As of 2011, ProCredit Holding consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.

As of March 2012, EFSE has an outstanding investment portfolio of EUR 722.8 million (USD 885 million). As of 2012, EFSE holds a label from Luxembourg Labeling Agency (LuxFLAG), an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.

By Charlotte Newman, Research Associate

About ProCredit Bank Bosnia and Herzegovina
ProCredit Bank Bosnia and Herzegovina (PCB BiH), a member of Germany’s ProCredit Holding, is a development-oriented bank that focuses on serving micro-, small and medium-sized enterprises. As of 2011, PCB BiH reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 205 million, a gross loan portfolio of USD 163 million and deposits of USD 139 million. As of 2012, ProCredit Holding consists of 21 banks operating in emerging markets in Eastern Europe, Latin America and Africa.

About ProCredit Holding
ProCredit Holding consists of 21 banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have previously had limited access to formal financial services. As of December 31, 2010, it reported assets of EUR 5.2 billion (USD 6.8 billion) and a gross loan portfolio of EUR 3.6 billion (USD 4.8 billion).

About European Fund for Southeast Europe (EFSE)
Established in 2005, the European Fund for Southeast Europe aims to foster 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 was initiated by KfW Entwicklungsbank, a German development bank, with support from the German Federal Ministry for Economic Cooperation and Development (BMZ in German) and the European Commission. 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 March 2012, EFSE has an outstanding investment portfolio of EUR 723 million (USD 885 million). As of 2012, EFSE holds a label from LuxFLAG, an organization that certifies that microfinance investment vehicles actually invest in the microfinance sector.

Sources and Additional Resources:

Information sent by European Fund for Southeast Europe to MicroCapital.

EFSE Press Release: “EFSE and ProCredit Bank Sign EUR 2.5 million Loan Agreement to Support Small Enterprises in Bosnia and Herzegovina,” http://www.efse.lu/Details—2012-12-20-EFSE-and-ProCredit-Bank-sign-EUR-2-5-million-loan-agreement-to-support-small-enterprises-in-Bosnia-and-Herzegovina——_nav._siteid.134_entryid.460_dir._likecms.html

MicroCapital.org story, January 7, 2013, “MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $32m to Garanti Leasing to Boost Services to Mico, Small and Medium-Sized Enterprises,” http://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-32m-to-garanti-leasing-to-boost-services-to-microsmall-and-medium-sized-enterprises/

MicroCaptial.org story, December 5, 2012, “MICROCAPITAL BRIEF: European Fund for Southeaset Europe (EFSE) Loans $10m to AccessBank Azerbaijan,” http://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-10m-to-accessbank-azerbaijan/

MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29

MicroCapital Universe Profile: ProCredit Bank Bosnia and Herzegovina
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Bosnia+and+Herzegovina

MicroCapital Universe Profile: ProCredit Holding
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding

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