EFSE extends EUR 10m in a pioneering senior preferred facility to NLB Banka Sarajevo

Luxembourg and Sarajevo, 28 September 2023 – The European Fund for Southeast Europe (EFSE) has committed EUR 10m to NLB Banka Sarajevo through a ground-breaking Senior Preferred Unsecured Facility, marking it as the first such facility in the country. The facility is eligible under the Minimum Requirement for own funds and Eligible Liabilities (MREL), underscoring EFSE’s commitment to fostering innovative financial solutions to enhance the banking sector’s resilience and responsiveness to market needs. 

Additionally, EFSE has previously approved comprehensive ESG Technical Assistance (TA) to bolster NLB Banka’s implementation of ESG standards. The project underway demonstrates the bank’s dedication to embracing sustainable and responsible banking practices. More details on this collaboration can be found here

EFSE Board Chairperson Dr. Klaus Müller said: “EFSE’s relationship with NLB has grown stronger and stronger since it began in 2008. This pioneering senior facility will play a pivotal role in enabling NLB Banka to sustain its growth momentum while bringing its operations and services in line with European ESG reporting requirements.” 

Denis Hasanić, board member from NLB Sarajevo said: “As member of the UN-Convened Net-Zero Banking Alliance, NLB Group is strongly dedicated in implementation of ESG standard. The technical assistance in ESG risk management area provided by the EFSE Development Facility, to NLB d.d. Sarajevo, will support us and our clients to jointly develop our capacities, knowledge, and expertise in the implementation of ESG standards.”  

The NLB Banka signing was held last week in the context of the day-long summit “Investing for the Common Good: ESG Risks to Rewards” in Sarajevo by EFSE to shine a spotlight on the importance of baking sustainability into the fabric of local economies, specifically ensuring that micro, small and medium enterprises (MSMEs) are equipped to operate according to ESG principles. As this transaction with NLB Banka shows, EFSE remains steadfast in its mission to empower financial institutions in the Southeast Europe region, driving forward innovation, sustainability, and growth in the region’s financial sector.  

The NLB Banka signing took place at Sarajevo’ City Hall, known as Vijećnica. Nestled in the heart of the old town district, this architectural masterpiece stands as a testament to the city's vibrant history, providing the perfect setting for this important milestone. 

About EFSE  

An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions. The fund’s impact management system, through its advisor Finance in Motion, underwent an independent verification by impact auditor BlueMark affirming strong Operating Principles for Impact Management alignment in 2021.  

EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.   

Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.   

For more information on the European Fund for Southeast Europe, please visit: www.efse.lu/  

For more information on Finance in Motion, please visit: www.finance-in-motion.com 

About NLB Banka 

NLB Banka d.d., Sarajevo is a member of the NLB Group, the largest bank and financial institution in Slovenia, whose primary focus is operating on the eastern European markets (Macedonia, Kosovo, Bosnia and Herzegovina, Montenegro, Serbia). Throughout its business, NLB Banka is led by strategy focusing on user experience, in accordance with which it continues to position itself as a regional champion providing comprehensive banking services to corporate and retail clients.  

NLB Banka, throughout the Federation of BiH region, provides a complete set of financial services, offers adjusted to the clients’ needs, high level of service quality, extensive network of branches, modern distribution channels of its services and individual approach and dedication to its clients.  

The aim of the NLB Banka is to build a sustainable business growth with a clear focus on profitability, improvement of corporate culture, business processes and efficiency, while assuring stimulating working environment enabling the employees to reach their personal goals. A special attention is paid to the development of new banking services, new distribution channels, as well as the larger availability of services to clients, through which NLB Banka can build a stronger reputation and brand recognition.  

Fundamental values that NLB Banka bases its business on are transparency, trust, stability, simplicity, and responsibility, all which are recognized by the clients who place their trust in NLB Banka for many years.  

For NLB Bank this region is home, and as a signatory of UN Principles of responsible banking, it has ambitions to anchor sustainable business in its core mission, ensuring that its products and services meet the needs of present generations, while preserving the opportunities for the future generations.  

For more information about NLB Banka d.d., Sarajevo, please visit: www.nlb.ba 
Media contact EFSE 

Louise Daruwalla-Nielsen 
Marketing & Communications 
Email: press@efse.lu 
Phone: +352 691 336 439  

Media contact NLB Sarajevo 

Maida Sarvan 
Expert Associate, Marketing and Public Relations 
Email: Maida.Sarvan@nlb.ba  
Phone: +387 33 720 644 

Get in touch

Interested in learning more about how the fund works, or seeking partnership opportunities? Contact an EFSE representative today.


Subscribe to OUR Newsletter

Stay up-to-date with the latest EFSE news by subscribing to our newsletter.