MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $8.3 to Agricover Credit of Romania for Agricultural Micro-, Small Businesses

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), recently announced that it will disburse a senior loan of EUR 7 million (USD 8.3 million) to Agricover Credit IFN SA (Non-banking Financial Institution Corporation), a lender to farmers in Romania. The aim of the loan is to fund the development of agricultural microenterprises and small business ventures in the country.

Ms Monika Beck, the chairperson of the board of EFSE, said that “as Agricover Credit executes its strategy of extending activities to new client segments, the institution will further consolidate its market position and achieve an even better outreach to the underserved MSEs”[1]. Robert Rekkers, the general manager of Agricover Credit, stated that “our ongoing collaboration with the EFSE allows us to provide more loans to the farmers, support investments and bring value to the Romanian agricultural sector as a whole”[1].

As of June 2013, EFSE had an investment portfolio of EUR 774 million (USD 1 billion). Agricover Credit is the investment arm of Romania’s Agricover Group, an integrated agriculture group with operations in grain sourcing, trading and logistics. For 2014, the turnover of Agricover Group was approximately EUR 300 million (USD 357 million). Further financial information on Agricover Group is not publicly available.

By Alíz Crowley, Research Associate

About Agricover Credit

Established in 2008, Agricover Credit is a non-banking financial institution that lends exclusively to farmers in Romania. For 2014, the turnover of Agricover Group was approximately EUR 300 million (USD 357 million). Further financial information on Agricover Group is not publicly available.

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] European Fund for Southeast Europe (EFSE), News, Press Releases, EFSE and Agricover Credit expand their partnership to support agricultural businesses in Romania

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

MicroCapital, January 4, 2015, European Fund for Southeast Europe (EFSE) Loans $30m to Finansbank of Turkey to Support Micro-, Small, Medium-sized Enterprises (MSMEs)

MicroCapital, January 8, 2013, European Fund for Southeast Europe (EFSE) Loans $17m to Banca Transilvania, Agricover Credit of Romania

MicroCapital Universe Profile: European Fund for Southeast Europe (EFSE)

MicroCapital Universe Profile: Agricover Credit

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