The European Fund for Southeast Europe (“EFSE”) invested in an inaugural local currency bond of Raiffeisen Bank Serbia (“RBRS”) with the issuance of RSD 6.0 billion (equivalent of EUR 51.2 million). The bond is eligible for the minimum requirement for own funds and eligible liabilities (“MREL”) and will be listed on the Belgrade Stock Exchange.
This transaction is contributing significantly to the development of the local capital market. This transaction also enabled the Fund to renew relationship with one of the leading banks in the banking sector. The investment in a local currency bond is also supporting the dinarisation strategy of the National Bank of Serbia.
EFSE financing will support lending to micro, small and medium-sized enterprises (MSMEs) in remote and rural areas where access to finance is limited and where the bank has strong outreach.
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
Media contact EFSE
Louise Daruwalla-Nielsen
Marketing & Communications
Email: press@efse.lu
Phone: +352 691 336 439
Photo by Nikola Aleksic on Unsplash
