MICROCAPITAL BRIEF: European Fund for Southeast Europe (EFSE) to Loan $6.8m to Intesa Leasing Belgrade of Serbia to Support Micro-, Small Enterprises

The European Fund for Southeast Europe (EFSE), a Luxembourg-based microfinance investment vehicle (MIV) backed by the European Union, recently has announced a new partnership agreement with Intesa Leasing Belgrade (ILB) of Serbia, the lease financing arm of Banca Intesa Belgrade, a Serbian commercial bank that is a wholly owned subsidiary of Italian banking group Intesa Sanpaolo. Under the agreement, EFSE will extend a senior loan of EUR 5 million (USD 6.8 million) to ILB. ILB intends to use the funds to increase its lease financing activity targeting micro- and small enterprises (MSEs) in Serbia.

As of December 2012, Intesa Leasing Belgrade reports total assets of RSD 6.9 billion (USD 80 million), return on assets of 1.7 percent and return on equity of 8.8 percent. Intesa Sanpaolo has assets of EUR 639.8 billion (USD 863.7 billion) and operations in 12 European countries. As of June 2013, EFSE has an outstanding investment portfolio of EUR 774 million (USD 1 billion). EFSE holds a microfinance label from the Luxembourg Fund Labeling Agency (LuxFLAG), an NGO that certifies that social investment vehicles actually invest as advertised.

By A’kos Szebeni, Research Associate

About Intesa Leasing Belgrade (ILB)

Intesa Leasing Belgrade is a Serbia-based financial institution offering lease and vendor financing for micro-, small and medium-sized enterprises. ILB is a wholly owned subsidiary of Banca Intesa Belgrade, a Serbian commercial bank. ILB sells its products and services through a network of approximately 210 branches administered by its parent company in 120 cities in Serbia. ILB reported RSD 6.9 billion (USD 80 million) in total assets, return on assets (ROA) of 1.7 percent and return on equity (ROE) of 8.8 percent as of December 2012. Banca Intesa Belgrade, in turn, is a unit of Italy’s Intesa Sanpaolo, which has operations in 12 European countries.

About Banca Intesa Belgrade

Banca Intesa Belgrade is a commercial bank based in Belgrade, Serbia. Its products include savings; bonds; guarantees; and loans to individuals, farms and small businesses. Banca Intesa Belgrade is a member of Italy’s Intesa Sanpaolo, a commercial banking group that has subsidiaries in 12 European countries and total assets of EUR 639.8 billion (USD 863.7 billion) as of September 2013. Banca Intesa Belgrade reported RSD 413.3 billion (USD 4.81 billion) in total assets, return on assets of 2.4 percent and return on equity of 11.1 percent as of December 2012.

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 2013, EFSE also 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:

European Fund for Southeast Europe (EFSE), “EFSE signs new partner lending institution in Serbia: Intesa Leasing Belgrade,” http://www.efse.lu/Press-releases—Details—2014-01-23-EFSE-signs-new-partner-lending-institution-in-Serbia–Intesa-Leasing-Belgrade——_nav.52_siteid.134_entryid.519_dir._likecms.html

MicroCapital, December 23, 2013, “European Fund for Southeast Europe (EFSE) Loans $3.4m to Agricultural Cooperative Bank of Armenia (ACBA) Leasing in Armenia, Makes $106k Equity Investment in Kreditimi Rural i Kosoves of Kosovo,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-3-4m-to-agricultural-cooperative-bank-of-armenia-acba-leasing-in-armenia-makes-106k-equity-investment-in-kreditimi-rural-i-koso/

MicroCapital, December 19, 2013, “European Fund for Southeast Europe (EFSE) Loans $63m to Belorussian-Russian Belgazprombank of Belarus, Banca Transilvania of Romania, Microfinance Institution AccessBank of Azerbaijan,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-63m-to-belorussian-russian-belgazprombank-of-belarus-banca-transilvania-of-romania-microfinance-institution-accessbank-of-azerbai/

MicroCapital, November 9, 2013, “European Fund for Southeast Europe (EFSE) Lends $10m to Megabank of Ukraine to Support Agricultural Lending,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-lends-10m-to-megabank-of-ukraine-to-support-agricultural-lending/

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, September 19, 2013, “European Fund for Southeast Europe to Loan $6m to Inecobank to Support Micro- and Small Enterprises (MSEs),” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-to-loan-6m-to-inecobank-to-support-micro-and-small-enterprises-mses/

MicroCapital, December 24, 2012, “EBRD Loans $56m to Ohridska Banka of Macedonia, Banca Intesa Beograd of Serbia for SMEs,” https://www.microcapital.org/microcapital-brief-ebrd-loans-56m-to-ohridska-banka-of-macedonia-banca-intesa-beograd-of-serbia-for-smes/

MicroCapital Universe Profile: Intesa Leasing Belgrade (ILB), https://www.microcapital.org/microfinanceuniverse/tiki-editpage.php?page=Intesa+Leasing+Belgrade

MicroCapital Universe Profile: Banca Intesa Belgrade, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Banca+Intesa+Beograd

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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