EFSE establishes partnership with CreditWest Bank in Ukraine
European Fund for Southeast Europe to support CreditWest Bank in expanding SME and agricultural finance in Ukraine
Luxembourg, 21 December 2017 – The European Fund for Southeast Europe (EFSE) has provided CreditWest Bank, Ukraine, with a financing package of EUR 6 million, including the equivalent of EUR 3 million in local currency, which will allow the bank to expand into small and medium-sized enterprise (SME) financing with particular focus on agricultural businesses.
Having started as a corporate bank, CreditWest Bank is diversifying into the SME segment to increase its outreach as well as local businesses’ access to financing by offering dedicated financial solutions. The bank has already demonstrated its commitment to fostering business and economic development in the country – an endeavor that resonates with EFSE’s own mission of supporting sustainable economic growth in the region.
EFSE Board Chairman Christoph Tiskens said: “We are excited at this opportunity to work with CreditWest Bank in tailoring credit solutions that meet customers’ needs and business capacities. This new partnership is another step in EFSE’s commitment to investing in the economic development and prosperity of Ukraine.”
“Partnering with EFSE is an important step for our bank in pursuing the development strategy in Ukraine, which is largely founded on servicing small and medium enterprises. We trust that with the funding support of EFSE, we will be better positioned to cater to the needs of SMEs and agricultural businesses in a tailored manner, supporting their productivity, competitiveness and viability,” commented Temporarily Acting Chairman of the Board of CreditWest Bank, Igor Tykhnonov.
About the European Fund for Southeast Europe
The European Fund for Southeast Europe (EFSE) was initiated by KfW Development Bank (KfW) with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. It aims to foster economic development and prosperity in Albania, Armenia, Azerbaijan, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, former Yugoslav Republic of Macedonia, Kosovo, Georgia, Moldova, Montenegro, Romania, Serbia, Ukraine and Turkey. As access to finance is a key success factor in developing the micro, small and medium enterprise segments, the EFSE focuses on assisting local financial sectors in strengthening their ability to ensure adequate and sustainable financing. The funding the EFSE provides as long-term finance primarily for micro and small enterprises (MSEs) – but also for private households in the form of home improvement loans – is channelled to these loan customers through local partner lending institutions. Supporting the EFSE’s investment activities is the EFSE Development Facility, which provides partner lending institutions with technical assistance, consulting and training services to build operational capacities and professional management.
Initiated by KfW Development Bank (KfW) on 15 December 2005 from four multi-donor programs under its management, the EFSE is the first public-private partnership of its kind and the first privately managed fund in development finance to leverage private funding for MSE finance in the target region. Capital is provided by donor agencies, international financial institutions and private institutional investors, including the German Federal Ministry for Economic Cooperation and Development (BMZ), the European Commission (EC), the Government of Albania, Small and Medium Business Credit Support CJSC (SMBCS), a subsidiary of the Central Bank of Armenia, the Development Bank of Austria (Oesterreichische Entwicklungsbank, OeEB), the Swiss Agency for Development and Cooperation (SDC), the Danish International Development Agency (Danida), KfW as Lead Investor, the International Finance Corporation (IFC), the Netherlands Finance Company (FMO), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), Sal. Oppenheim and Deutsche Bank.
Hauck & Aufhäuser Asset Management Services S.à r.l., Luxembourg, acts as the EFSE’s Fund Manager and Finance in Motion GmbH, Germany, as Advisor.
About CreditWest Bank, Ukraine
The Public Joint Stock Company “WEST FINANCE AND CREDIT BANK,” which operates under CreditWest Bank brand name, was established as a green field bank on 4 October 2006, being the first Turkish financial institution to enter the Ukrainian market. The bank is fully owned by one of the leading Turkish conglomerates ALTINBAŞ HOLDING ANONİM ŞIRKETİ, which operates in the energy, finance, jewelry, logistics and education sectors.
Initially, CreditWest Bank started as a universal bank with strong focus on providing services to corporate clients. To date, the bank is diversifying to the SME client segment to meet local businesses’ financing needs by providing dedicated financial solutions. The bank is strategically positioned to further develop its cooperation with international financial institutions and donors, aimed at fostering economic development and prosperity in Ukraine, including EFSE, German-Ukrainian Fund, Black Sea Trade and Development Bank and European Investment Bank among others.
For more information about CreditWest Bank, please visit: www.creditwest.ua/en
Media contact EFSE
Manager, Marketing & Communications
Tel: +49 (0)69 271 035-171
Media contact CreditWest Bank
Head of Business Development Department
Tel: +38 044 365 00 01
Finance in Motion GmbH Sylvia Wisniwski Carl-von-Noorden-Platz 5 60596 Frankfurt am Main Germany