MICROCAPITAL BRIEF: Microfinance Investment Vehicle (MIV) European Fund for Southeastern Europe Invests $25m in Debt in Serbian Komercijalna Banka

In August 2010, the European Fund for Southeast Europe (EFSE), a microfinance investment vehicle (MIV) managed by Oppenheim Asset Management Services, loaned USD 25 million to Serbian Komercijalna Banka, a bank founded in 1970 with 251 branches in Serbia.

According to its annual financial report in 2007, the company has total assets of RSD 205 billion (the equivalent of USD 2.47 billion) and a pre-tax profit of RSD 2.1 billion (the equivalent of USD 25.4 million)

According to the Microfinance Information Exchange (MIX), the microfinance clearinghouse, as of 2009, the EFSE has 58 active microfinance investments, with assets totaling USD 775 million.

About the European Fund for Southeast Europe (EFSE):
The European Fund for Southeast Europe (EFSE) aims to foster economic development in the southeastern Europe region by providing financial services to micro- and small enterprises and to private low-income households via qualified local financial institutions. EFSE was set up in 2005, with KfW, a German development bank, as the fund initiator and Oppenheim Asset Management as the fund manager. Its sole fund adviser is Finance in Motion. Since its founding, EFSE has invested approximately EUR 720 million, the equivalent of approximately USD 965 million, in Southeast Europe, facilitating 200,000 loans. As of December 31, 2009, EFSE has an outstanding investment portfolio of EUR 578 million, the equivalent of USD 775 million. It is also certified by LuxFLAG, an independent organization which certifies that microfinance vehicles actually invest in the microfinance sector.

About Komercijalna Banka:
Komercijalna Banka is a bank that was founded in 1970 in Belgrade, Serbia. It has a network of 251 branches in Serbia. Two of the bank’s biggest stakeholders are the Government of Serbia with 40 percent and the European Bank for Reconstruction and Development with 25 percent. According to its annual financial report in 2007, the company has total assets of RSD 205 billion (the equivalent of USD 2.47 billion) and a pre-tax profit of RSD 2.1 billion (the equivalent of USD 25.4 million)

By Trevor Kwong, Research Assistant:

Sources and Additional Resources:
[1] Source: EFSE email correspondence with MicroCapital

[2] MicroCapital Universe: Komercijalna Banka:
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Komercijalna+Banka

[3] Microfinance Information Exchange: The European Fund for Southeastern Europe (EFSE):
http://mixmarket.org/funders/efse

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/tiki-index.php

Similar Posts: