Frankfurt/Main, 16th June, 2009 – The Luxembourg Fund Labeling Agency a.s.b.l. (LuxFLAG) has renewed its Microfinance Label for the microfinance investment fund European Fund for Southeast Europe (EFSE). This is for the third consecutive year that the Fund has received the Label. In 2007, EFSE received the LuxFLAG label (the Label) for the fist time and was subsequently one of the first three Microfinance Investment Vehicles (MIVs) to receive the Label.
LuxFLAG was formed in Luxembourg in 2006 as an independent, non-profit association, backed by representatives from the private sector, non-governmental organisations and the State of Luxembourg, to encourage private investment in MIVs. To this end, the Label certifies that MIVs meet a specific set of qualifications, a quality guarantee ensuring investors that they are truly investing in microfinance, directly or indirectly. One of the qualifications is that the MIVs invest at least half of their assets in microfinance. They must also demonstrate transparency, be subject to supervision by a national regulator, and have at least one-quarter of their microfinance portfolio invested in microfinance institutions rated by a microfinance rating agency recognised by LuxFLAG. Since its creation in 2006, LuxFLAG has granted its Label to six MIVs. The Label is not a guarantee of performance nor does it constitute a recommendation to invest.
This internationally renowned seal of quality for the third consecutive year is not only clear evidence of EFSE staying committed to the mission of supporting and increasing access to finance for micro and small enterprises as well as low-income private households, but it also confirms that it meets internationally recognised standards in the microfinance sector.
About the European Fund for Southeast Europe (EFSE):
EFSE is a Luxembourg-registered SICAV-SIF Fund aimed at fostering economic development and prosperity in Southeast Europe. The Fund is one of the largest microfinance investment funds worldwide, with an investment portfolio of over EUR 530 million (as of 31st March, 2009). It offers long-term funding instruments to financial institutions in Southeast Europe for on-lending to micro and small enterprises as well as to low-income private households. Since its inception in December 2005, the Fund has committed over EUR 600 million to 55 commercial banks, microfinance institutions and non-bank financial institutions to facilitate EUR 835 million in 166,000 loans to MSEs and low-income private households (as of 31st March, 2009). This in turn has contributed to the creation of 245,000 jobs (EFSE Annual Development Impact Study 2007). The average loan amount that has been refinanced by EFSE amounts to approximately EUR 5,000, well below the threshold of EUR 10,000 of microfinance for Eastern Europe.
Established by KfW as a Public-Private Partnership, EFSE exhibits a strong investor base of donors, international finance institutions and private institutional investors, including: European Commission, Federal German Ministry for Economic Cooperation and Development (BMZ), Swiss Agency for Development and Cooperation (SDC), Austrian Development Agency (ADA), Danish International Development Agency (DANIDA), the Government of the Republic of Albania, KfW, IFC International Finance Corporation, EBRD European Bank for Reconstruction and Development, FMO Netherlands Development Bank, EIB European Investment Bank, OeEB Oesterreichische Entwicklungsbank (Development Bank of Austria), German bank Sal. Oppenheim, French bank Crédit Coopératif and Deutsche Bank. Besides the investment fund, EFSE has a Development Facility. By giving grants, it funds technical consulting and training measures to institutionally strengthen the partner finance institutions. The fund manager of EFSE is Oppenheim Asset Management Services, Luxembourg. ConCap Connective Capital, Frankfurt/Main, Germany, is the advisor to the fund management.
Media contact:
Mr. Samir Djikić
Tel: +49 (0)69 154008-379
E-mail: djikic@connective-capital.com
