Funding for the EFSE

Donors are essential to the EFSE’s operations: the grants they provide serve to leverage private capital through the creation of different risk tranches and a waterfall repayment mechanism. Donor funds constitute the risk cushion (C shares - first loss tranche) for private investors who otherwise would be reluctant to invest in countries that are generally perceived as high risk. This enables private capital to be mobilised, substantially expanding the total amount of funding available for development purposes.

Grants in the form of risk capital are also relevant for

  • Starting EFSE operations in new countries, and
  • Introducing new financial instruments and higher-risk products.

This leveraging potential is critical to the EFSE’s ability to contribute to, drive even, the development of capital markets in the target regions when economic growth more than ever depends on access to long-term financing. Importantly, the public funds comprising the EFSE’s first loss tranche are not ‘new’ public funds that have been allocated to development purposes. Rather, funds from existing bilateral donor programs were transferred into the EFSE at its inception in December 2005.

Contact Point for Donors

KfW Christoph Tiskens Palmengartenstr. 5-9 60325 Frankfurt am Main Germany

Christoph Tiskens, KfW
Phone E-Mail
+49 (0)69 7431 4260

Investment Porfolio

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