EFSE, Raiffeisen BiH extend partnership in housing finance
EFSE’s EUR 10 million loan provides further support for its oldest partner in Bosnia and Herzegovina
Luxembourg and Sarajevo, 9 January 2017 -- The European Fund for Southeast Europe (EFSE) today announced a EUR 10 million senior loan to Raiffeisen Bank d.d. Bosna i Hercegovina, which has been a fund partner for over a decade.
The loan is earmarked for housing finance at the lender, a unit of Austria’s Raiffeisen Bank International and one of the leaders in retail banking in Bosnia and Herzegovina.
EFSE Board Chairman Christoph Tiskens said: “Our renewed partnership with Raiffeisen Bank will provide increased support for Bosnia and Herzegovina’s housing market, one of the sectors we strive to bolster in the countries we serve.”
Chairman of the Management Board of Raiffeisen Bank in B&H, Karlheinz Dobnigg, stated: “We are happy to extend our long-term successful collaboration with EFSE, which increases the availability of affordable housing finance in the country. Due to this credit line, Raiffeisen Bank will be able to more successfully meet the local market demand for housing loans.”
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.
Oppenheim Asset Management Services S.à r.l., Luxembourg acts as the EFSE’s Fund Manager and Finance in Motion GmbH, Germany as Advisor.
About Raiffeisen BANK d.d. Bosna i Hercegovina
Raiffeisen BANK d.d. Bosna i Hercegovina is a subsidiary of Raiffeisen Bank International AG, one of the leading banks in Central and Eastern Europe and Austria. More than 1,300 employees serve around 500,000 customers through 96 business outlets. Numerous national and international awards and acknowledgement by internationally recognized magazines such as Global Finance, Euromoney and the Banker attest to its business success. Investments into new technologies, experienced staff, active personnel development, a focus on individual customer approach and implementation of new state-of-the-art products and services make it one of the leading competitors in the B&H market. Besides Raiffeisen BANK, the Raiffeisen Group in B&H also comprises Raiffeisen INVEST, Raiffeisen CAPITAL, Raiffeisen LEASING and RL ASSISTANCE.
For more than 130 years, the Raiffeisen Group has been combining financial success with socially responsible business conduct, where corporate, environmental and social responsibility are the key references, guided by the key principles of social solidarity, helping people to help themselves and sustainability established by Friedrich Wilhelm Raiffeisen.
Media contact EFSE
Tel: +49 (0)69 271 035-307
Media contact Raiffeisen Bank
Raiffeisen BANK dd Bosna i Hercegovina
Corporate Communications & Sustainability Management
Tel: +387 (0) 33 287 655; +387 (0) 33 287 426
Finance in Motion GmbH Sylvia Wisniwski Carl-von-Noorden-Platz 5 60596 Frankfurt am Main Germany