Investment fund NORD/LB HORIZONT invests in microfinance investment fund EFSE

Frankfurt am Main, February 02, 2010 – The investment fund NORD/LB HORIZONT has placed a tranche in the microfinance investment fund European Fund for Southeast Europe (EFSE) and has invested roughly 3 percent of its fund volume in the EFSE.

NORD/LB HORIZONT, which was launched by the Norddeutsche Landesbank Luxemburg S.A., invests in a variety of traditional and alternative asset classes, including for example, inflation-linked bonds, real estate, gold and microfinance. The fund aims for continuous performance and the real preservation of capital in case of an inflation.

This investment by NORD/LB underlines the continued interest displayed by private institutional investors in ethical investments. In the first quarter of 2010 alone, EFSE recorded an inflow of roughly EUR 37 million worth of private funds.

“We are observing a trend towards sustainable financial investments. An increasing number of investors want to solidly, fairly and sustainably invest their money. We are seeing a particularly high level of interest in responsible investments with foundations, religious organizations and family offices,” explains Marco Schmitz, Managing Director of Oppenheim Asset Management Services S.à r.l., the EFSE fund manager.

EFSE, which was initiated by German development bank KfW, has acquired committed funding of over EUR 715 million from public investors, international financial institutions and private institutional investors to-date. The senior tranche, which is primarily reserved for private institutional investors, amounts to EUR 383.3 million. This translates into 53 per cent of all committed funds.

EFSE offers long-term financing instruments for financial institutions located in Southeast Europe for on-lending to micro and small enterprises and low-income private households. Granted loans average at around 4,000 Euros. Since the fund was launched in December 2005, it has enabled the refinancing of around 200,000 micro and small credits with a total volume of EUR 1 billion. The Frankfurt/Main-based company Finance in Motion GmbH which acts as EFSE’s fund advisor, reviews the sustainability and social impact of these investments. This supports EFSE in ensuring that refinanced financial institutions do not advance any consumer loans – especially in East Europe such credits are often the reason for debt entanglement among private clients.


Background information about the European Fund for Southeast Europe (EFSE)
With an investment portfolio of EUR 578 million (as of December 31, 2009), the EFSE is the world’s largest microfinance investment fund. Aimed at fostering economic development and prosperity in the region of Southeast Europe, the Fund offers long-term funding instruments to qualified local financial institutions for on-lending to micro and small enterprises (MSEs) and low-income private households. EFSE also runs a Development Facility whereby grants enable technical consulting and training measures to institutionally strengthen the partner finance institutions. Initiated by KfW, the EFSE is a investment company that falls under the jurisdiction of the Grand Duchy of Luxembourg in the form of a public limited company, qualifying as a société d'investissement à capital variable ("SICAV-SIF"). As the first Public-Private Partnership of its kind, combining public funding and private investment, the Fund has a strong investor base of donors, international financial institutions and private institutional investors, including: European Commission, Federal German Ministry for Economic Development and Cooperation (BMZ), the governments of Austria, Switzerland, Denmark and Albania, KfW, IFC, FMO Netherlands Development Bank, European Bank for Reconstruction and Development, European Investment Bank, OeEB Oesterreichische Entwicklungsbank, Sal. Oppenheim, Deutsche Bank and other private investors. Fund manager is Oppenheim Asset Management Services S.à r.l., Luxembourg. Finance in Motion GmbH, Frankfurt/Main, Germany, is the advisor to the fund management.

Media contact

European Fund for Southeast Europe  Mr. Samir Djikić, Communications Manager, EFSE Tel: +49 (0)69 / 977 876 50-26 E-mail: press@efse.lu