EFSE provides EUR 20 million to Raiffeisenbank (Bulgaria) to promote housing finance in Bulgaria

Frankfurt am Main and Sofia, September 23, 2010 – The European Fund for Southeast Europe (EFSE) has signed a loan agreement with Raiffeisenbank (Bulgaria) EAD (or “the Bank”), providing the Bank with EUR 20 million to be used for on-lending to lower income private households in Bulgaria to finance housing improvements, renovations, enlargements, reconstruction as well as home purchases. It is EFSE’s first loan agreement with the Bank.

The transaction with Raiffeisenbank (Bulgaria) reaffirms EFSE’s commitment to deepening the financial sector in Bulgaria and increasing the range of financial products available to underserved segments of the economy, such as micro and small enterprises and lower income groups.

"EFSE is pleased to have found in Raiffeisenbank in Bulgaria, a new, well-established partner to increase the availability and affordability of housing finance particularly to low-income private households in Bulgaria”, said Dr. Klaus Glaubitt, Chairman of the Board of Directors of EFSE. “We believe housing finance has a lot of potential in Bulgaria and in Southeast Europe as a whole. We look forward to expand financing for housing also in other countries, thereby helping to improve living standards.”

“Thanks to this credit line, Raiffeisenbank will provide some of the best conditions on the Bulgarian market for mortgage and housing loans for private individuals. In addition, as the interest rate on loans is based on a generally accepted European index, the borrowers can monitor its movements on the market”, said Momtchil Andreev, CEO of Raiffeisenbank (Bulgaria).

To ensure transparent pricing, the interest rate of the housing loans provided by Raiffeisenbank (Bulgaria) under the EFSE credit line is based on the renowned European index EURIBOR - the rate at which euro inter-bank term deposits are offered by one prime bank to another within the Euro zone. In accordance with EFSE’s responsible finance principles, borrowers can follow its movements on the market and predict the price of their loan.

With the loan agreement with Raiffeisenbank (Bulgaria), the total amount of financing EFSE has offered to Bulgarian financial institutions since the start of its involvement in the country in 2008 to support access to finance for local micro and small enterprises and private households, increases to EUR 30 million.

About the European Fund for Southeast Europe (EFSE)
The development finance fund European Fund for Southeast Europe (EFSE) is aimed at fostering economic development and prosperity in Southeast Europe, including: Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, FYR Macedonia, Georgia, Kosovo, Moldova, Montenegro, Romania, Serbia and Ukraine. It offers long-term funding instruments to local financial institutions for on-lending business loans to micro and small enterprises (MSEs) as well as housing loans to low-income private households. The investment activities of EFSE are supported by the EFSE Development Facility, which provides funding for technical assistance, consulting and training to partner lending institutions as well as awareness raising and market enabling activities. Overall, since its inception in December 2005, EFSE has offered EUR 822 million in financing to commercial banks, microfinance institutions and non-financial institutions, facilitating a total number of more than 238,000 MSE and housing loans. Initiated by KfW (The German Development Bank), the EFSE is a Public-Private Partnership that combines funds from various private investors, European governments an international financial institutions, 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 Finance Company, European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Oesterreichische Entwicklungsbank (OeEB), Deutsche Bank and Sal. Oppenheim. EFSE is privately managed with Oppenheim Asset Management Services S.à r.l., Luxembourg, as the fund manager and Finance in Motion GmbH, Frankfurt/Main, Germany, as the fund advisor.

About Raiffeisenbank (Bulgaria) EAD
Raiffeisenbank (Bulgaria) EAD is fully owned by Raiffeisen International Bank-Holding AG, which operates one of the largest banking networks in Central and Eastern Europe. As Bulgaria’s fourth largest bank in terms of total assets, Raiffeisenbank (Bulgaria) services more than 715,000 customers through a network of 189 branches, including local and international corporations, as well as small and medium-sized enterprises and private customers with the complete range of banking products.

For further information about Raiffeisenbank (Bulgaria), please visit: www.rbb.bg

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

Raiffeisenbank (Bulgaria) Public Relations Department Tel: +359 2 91 985 174/600/535 E-mail: press.pr@raiffeisen.bg