MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Provides $12.5m to Fibabanka of Turkey to Support Small, Medium-Sized Enterprises (SMEs)

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV), will disburse a EUR 10 million (USD 12.5 million) senior loan to Fibabanka, a Turkish commercial bank, for lending to small and medium-sized enterprises (SMEs). Bekir Dildar, Fibabanka’s general manager, stated that “this medium-term funding will enhance our finance capacity and enable us to reach out to new SME clients.” This deal follows the completion of a previous loan from EFSE in 2012 for on-lending to micro- and small enterprises (MSEs).

In 2013, Fibabanka reported total assets of TRY 550 million (USD 245 million). As of June 2013, EFSE has an investment portfolio of EUR 774 million (USD 1 billion).

By Emily Teleposky, Research Associate

About Fibabanka AS:

Fibabanka is a Turkish commercial bank that operates 50 branches in the country. It was originally named Millennium Bank AS, but in 2011 changed its name to Fibabanka AS. The bank is a subsidiary of Turkish Fiba Holding AS. As of 2013, Fibabanka reported total assets of TRY 550 million (USD 245 million).

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 Provides Additional EUR 10 Million Loan to Fibabanka, http://www.efse.lu/Details—2014-10-28-EFSE-expands-Fibabanka-partnership-with-additional-EUR-10-million-loan——_nav._siteid.134_entryid.569_dir._likecms.html

[2] MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $25m to Bank of Georgia for On-lending to Micro, Small Enterprises (MSEs), July 12, 2014, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-25m-to-bank-of-georgia-for-on-lending-to-micro-small-enterprises-mses/

[3] MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $4m to Mikrofin Banja Luka of Bosnia and Herzegovina for On-lending to 2,000 Micro-, Small Enterprises, May 30, 2014, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-4m-to-mikrofin-banja-luka-of-bosnia-and-herzegovina-for-on-lending-to-2000-micro-small-enterprises/

[4] MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) Loans $15m to AccessBank of Azerbaijan, February 11, 2014, https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-15m-to-accessbank-of-azerbaijan/

[5] 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

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