initiatEd By kfw managEd By Sal. oppEnhEim adviSEd By FinancE in motion EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS EFSE – a dEvElopmEnt FinancE initiativE SupportEd By European Investment Fund as Trustee for European Commission covEr picturE: dragana Stojak, chickEn FarmEr, cliEnt oF mi-BoSpo, BoSnia and hErzEgovina EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Background The European Fund for Southeast Europe – EFSE – is the successor of various development finance initiatives that have been implemented since 1998 as a post-conflict reconstruction effort in Southeast Europe. These initiatives received financial support this donor collaboration under the The main advantages for incorporating the from the European Union, the Austrian, leadership of kfw generated an preceding development finance initiatives German and Swiss governments as well as impressive track record in terms of into the Fund in December 2005 were: a loan from the Netherlands Development development impact and financial 1 Finance Company (FMO). KfW Entwicklungs- performance : Ensuring sustainability of operations bank managed these funds under a fiduciary through institutionalisation and facilitating arrangement. • more than 45,000 loans were flexible entry and exit of donors at the granted between 1998 and the same time, including the transfer of owner- These preceding initiatives in Bosnia and end of 2005. ship to local stakeholders, Herzegovina, Kosovo, Montenegro and Serbia 2 provided long-term funds to local financial • in the same period, the total leveraging additional funds from private institutions for on-lending to micro and amount disbursed was almost institutional investors in the form of private small enterprises and private households. 280 million Eur. public partnership, Furthermore, comprehensive technical 3 assistance programmes assisted in adjusting • portfolio at risk of over 30 days Extending the scope of financial services lending techniques to increase outreach to stood at around 1.8 % as of to the partner lending institutions and the target groups. 31 december 2005. the ultimate target groups, and 4 • the institutional capacities of generating operational efficiency gains. around 30 partner lending institutions were strengthened. During 2005 / 2006, the funds transferred from these preceding initiatives to EFSE amounted to around 125 million EUR. « the collaborative effort, referred to as the European Funds, has had a far greater impact than any one donor could have achieved alone, in terms of strengthened local lending institutions, increased outreach, and market development. … this successful collaboration offers one model for donors in other areas of the world. » CGAP Case Studies in Donor Good Practices No. 13 3 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS miSSion and oBjEctivES The Fund aims to foster economic development and prosperity in the Southeast Europe region, including the European Eastern Neighbourhood region, through provision of additional development finance. The Fund offers long-term funding instruments to qualified partner lending institutions to better serve the financing needs of micro and small enterprises and private households in the target region. dEvElopmEnt impact thE Fund’S ultimatE productS to BEnEFit thE • Supporting micro and small enterprises targEt groupS targEt groupS as the backbone of the local economies, At present, the Fund’s long-term funding therewith contributing to income generation • micro and small enterprises, instruments promote partner lending and employment creation, and institution products for the target groups, • Satisfying the basic need of decent shelter, including but not limited to: and • private households with limited • Micro and small enterprise loans, • Strengthening local financial markets. access to financial services. • Rural loans, particularly for agriculture, and • Housing loans. The Fund is flexible to include new products in view of unsatisfied needs of the target groups in the region. New products will be developed under the EFSE Development Facility. 4 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Sowing thE SEEdS For a BEttEr FuturE kadri mane, greenhouse operator client of opportunity albania On a little piece of land within Myzeqeja, To be able to sustain his business when Kadri’s tomatoes are mainly sold locally in a large agricultural area in central Albania, times are not good, and grow it when they Lushnja, «but sometimes we are lucky and Kadri Mane, his wife and two youngest are better, Kadri identified the need for major traders take the tomatoes in bulk, sons run a tomato farm. Every single day, financial support. He received this financial directly from the greenhouse, which is very they wake up early to work the land, care support from Opportunity Albania, an good», explains Kadri. for the young tomato plants or other seasonal EFSE partner lending institution dedicated vegetables, and reap the harvest come to financing micro entrepreneurs. Since « overall, i am really satisfied with April each year. 2002, Kadri has received five separate loans the results of our work as it helps totalling EUR 25,000. «My business is not me provide a much better life for my Kadri started working in agriculture when he huge and what I need are small amounts of family. So much so, that i was even was merely 10 years old. But it was already money. Big banks usually do not offer loans able to invest my latest loan to clear then that this was not only going to be to small farmers and are not suitable for me. renovate my home following the birth his livelihood, but an entire lifestyle – and Despite this, I have found a real partner in of my nephew – another child in one which over the years would require a great Opportunity Albania. They understand my the mane family who will no doubt deal of commitment from him and his family. financing needs and listen to me.» While also be taught the secrets of agri- appreciating the support he has experienced culture. » «It’s very hard and tiring work», says Kadri from his Opportunity Albania branch in whose friendly, tanned face clearly reflects Lushnja, he is just as aware that it would the love he has for the land and all its produce. make little sense if he wasn’t committed enough to his work. 5 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS SEwing hEr way to SuccESS ´ aida muslic, owner of a tailor shop client of procredit Bank, Bosnia and herzegovina ´ Aida Muslic is an inspirational young woman. result, the family’s standard of living remained « i am very grateful to the procredit Not only did she manage to recently complete relatively low and they were unable to invest Bank for supporting and trusting our her degree at the University of Sarajevo in in the expansion of their business. Aida realised small business. with a new machine Bosnia and Herzegovina, but she also man- that the only way for the business to grow we are able to service larger numbers aged to achieve something which most people and to secure a better future would be to apply of customers and increase our income. are never able to successfully accomplish in for financial support. and not to forget, having received their lifetime: the challenge of opening up funding from the procredit Bank, your own business. She approached the ProCredit Bank with a view i was able to concentrate much more to taking out a loan. Aida had heard a lot on my studies, and i successfully Ever since she was a young girl, both Aida of positive reports about the ProCredit Bank finished my degree. » and her mother, Kika, have had to work hard from a friend. A partner lending institution sewing drapery, clothes, pillows and table- to EFSE, the ProCredit Bank supports micro cloths, which they sold in a production shop and small business in their bid to develop in Sarajevo. The demand for the drapery and expand. Aida managed to obtain a loan they made was always quite high, as imported of around EUR 2,000 from the bank and goods of this kind always failed to meet used the money to purchase a new sewing customer’s expectations and moreover, their machine and materials, enabling Aida and budget. her mother to expand the output and income of their business. According to Aida, their In 2004, Aida came up with the idea of business profitability tripled in the last two opening their own shop. Although the busi- years as a result of the loan. ness had always been a success, even from the very beginning, all the money they earned always went towards Aida’s education. As a 6 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS rEFlEcting BuSinESS SuccESS Family jordanov, owner of the vegetable and fruit processing company kim dooEl client of Export & credit Bank (Ec Bank), Fyr macedonia In 1999, the family Jordanov established KIM later, KIM has become a brand to be reckoned as a bank. Their excellent repayment disci- as a micro family business. «Although we with. Its products are available in all major pline is a reflection of their hard work and enjoyed a great start with our tomato ketchup Macedonian supermarket chains and are even dedication to quality», says Krste Angelkov product, we soon realised we would have to being exported to neighbouring countries. loan officer at EC Bank. «We are convinced expand operations to maintain our position on Through carefully considering the investments that KIM has a promising future.» the Macedonian market», remembers they made with the loans provided by EC daughter Marija. Bank, KIM was able to raise the overall quality «thanks to the loans, we have been of production so that it today adheres to all able to continuously grow our busi- In 2002, they approached the EFSE partner major European food-manufacturing stan- ness. our company now employs lending institution EC Bank to find support dards. At present, KIM produces ketchup in a more than 30 dedicated staff – and for their ventures. «We needed funds for variety of different packages and sizes, and, the whole family is part of the active completion of a new facility as well as for in addition, has expanded production activities management of the company. our equipment. EC Bank was the only bank to tomato juice and mayonnaise. business has entered into a new era.» that understood our situation. They offered Magda Jordanov, the mother of the us a loan that was exactly tailored to our Recently, the company took a bold step in Jordanov family needs», says father Slavko. innovation and created a new lid for their ketchup bottles that allows for better hand- Eight years and three credit line loans to the ling and more hygienic closure. «KIM has total value of approximately EUR 100,000 achieved a great deal of confidence from us 7 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS targEt rEgion BElaruS ukrainE BoSnia and moldova azErBaijan hErzEgovina romania gEorgia SErBia Bulgaria montEnEgro armEnia alBania Fyr macEdonia koSovo * * under UNSCR 1244 / 99 Donor or grant funds can be earmarked to specific countries or the region at large. In priciple, additional countries may be included upon availability of donor or grant funds. invEStorS – FirSt-claSS StakEholdErS EFSE has attracted a highly reputable group These public investors have been joined of investors. These include the European by international financial institutions and Commission as well as the governments of development finance institutions, including Germany, Austria, Switzerland and Denmark, KfW, International Finance Corporation (IFC), through the German Federal Ministry for Netherlands Development Finance Company Economic Cooperation and Development (BMZ), (FMO), European Bank for Reconstruction Swiss Agency for Development and Coop- and Development (EBRD), European Invest- eration (SDC), Austrian Development Agency ment Bank (EIB), and the Oesterreichische (ADA), and the Danish International Devel- Entwicklungsbank (Austrian Development opment Agency (DANIDA). Bank, OeEB). In addition, the first government from South- Finally, private investors, both with a east Europe, the Government of the Republic commercial orientation and social of Albania, has invested in the Fund. responsibility, also contribute a significant share to the funding base. 8 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS partnEr lEnding inStitutionS « alter modus is a non-bank microfinance institution, established in 1999 and dedicated to providing finance to micro businesses in montenegro. with the funds we have received from EFSE we have been able to offer loans to over 2,000 clients totalling Eur 5 million, reaching out to the smallest and poorest of business clientele in montenegro. approximately half of our clients are women. as well as helping us in our aim of reaching more clients in rural settings, EFSE funds also assisted us to diversify our product range by providing further tailored loans to our clients in areas such as agriculture, for instance. » Luka – urovic, Co-Director, Alter Modus Ltd., D ´ Montenegro «kEp is the leading microfinance institution in kosovo with an outstanding portfolio of Eur 42 million, operating in 5 regions with over 30 offices throughout kosovo and serving approximately 19,000 clients. EFSE is one of kEp’s main investors and has provided strong funding support to our institution, enabling us to grow further as an institution and to increase our outreach to our common target group: micro and small businesses in kosovo. through the partnership with EFSE we were able to strengthen our position in the microfinance market. we are looking forward to continuing our Arten Zikaj, Deputy CEO, KEP, Kosovo cooperation with EFSE, also in the area of technical assistance. » targEt Financial Financial inStrumEntS For intErmEdiariES partnEr lEnding inStitutionS • Local commercial banks, The Fund provides long-term funding to • Specialised microfinance banks, partner lending institutions through a mix of • Microcredit organisations, different instruments. These include, without • Other non-bank financial institutions being limited to: (e.g. leasing companies), and • Medium to long-term senior loans, • Investment companies or funds with • Subordinated loans, a regional orientation. • Term deposits, • Subscriptions to bond issues, The target partner lending institutions have • Co-investments (syndicated loans), to either currently finance or be committed • Stand-by letters of credit, to finance the target group and fulfil a set of • Guarantees, and financial performance criteria. • Equity and quasi-equity participations. The Fund is able and willing to participate in loan syndications of a broader investors group if this adds value to the respective partner lending institution. 9 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS EFSE dEvElopmEnt Facility The EFSE Development Facility aims to increase the impact of EFSE’s investments within the target region. It provides complementary non-financial services to EFSE’s partner lending institutions, and commissions studies in selected areas of specific interest to the Fund. projEctS initiatEd and promoting rESponSiBlE StrEngthEning riSk SponSorEd By thE Facility FinancE managEmEnt • Technical assistance, consulting Since 2007, the EFSE Development Facility Against the background of the recent institu- and training for EFSE partner lending has promoted responsible lending practices tional challenges highlighted in the financial institutions, and client education in Southeast Europe crisis, the Development Facility has increased • Workshops and roundtables, through various initiatives at the sector level its activities in various fields related to risk • Research projects and studies, and as well as at the level of financial institu- management. Several partner lending institu- • Annual Development Impact Studies tions and clients. tions of the EFSE are supported in building of the Fund. up capacities in credit risk and delinquency Responsible finance conferences were organ- management. Hands-on, tailor-made techni- ised with KfW and hosted by the respec- cal assistance implemented in intermittent tive regulators in Serbia, Kosovo, Bosnia and missions of the consultants of the Facility, Herzegovina and Albania. These events helped the EFSE partner lending institutions brought together several experts and prac- to improve their internal structures and titioners who discussed the relevance of processes. Where necessary, the Facility also responsible finance and aimed to raise the supports financial institutions in reviewing awareness of this topic with the broader their overall risk management approach and public. In Bosnia and Herzegovina, the Facility systems, including operational risk, credit supported setting up a debt advice centre risk and market risk. Sector-wide workshops for clients of microcredit organisations. On provide a platform to discuss challenges the institutional level, responsible finance and how to approach them among different aspects were integrated into capacity building institutions, while research projects imple- measures and trainings. Projects at the mented by the Facility facilitate the develop- client level include the development of client ment of new ideas. educational booklets or educational TV clips to promote financial literacy among EFSE’s final target group. 10 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS dEvElopmEnt principlES The Fund is a unique development finance vehicle with the following features: Combination of development and market orientation, creating additionality and acting complementary to other donor and government initiatives, operating as market enabler, facilitator and risk taker, being an innovator and incubator for new financial products benefiting the target group, and ensuring sustainability of Fund operations through a commercial legal form. dEvElopmEnt pErFormancE dEvElopmEnt pErSpEctivES and impact aSSESSmEnt By 2014, the Fund is expected to: Development performance measurement • have an outstanding investment The Fund’s management is annually assessed portfolio of Eur 900 million, and according to the following development • have provided a cumulative performance criteria: number of more than 500,000 • Breadth of outreach: number of micro business loans to micro and small and small enterprises reached, and enterprises and farmers as well as • Depth of outreach: average loan size. housing loans to private households since its inception in december Development impact measurement 2005. An Annual Development Impact Study com- missioned to a third party analyses different the Fund clearly targets micro and aspects of the Fund’s development impact, small enterprises with an individual such as employment effects or its social and loan size of below Eur 10,000. environmental impact. Results have been published on the Fund’s website www.efse.lu. the Fund obtained the luxFlag microfinance label as one of the first development finance funds in the world. 11 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS organiSational StructurE initiator and lead investor: general Shareholder assembly Board of directors advisory group development Facility committee investment committee custody and Fund management and management of the Fund administration EFSE development Facility transaction management regional offices investment & technical assistance / training Qualified partner lending institutions commercial Banks microfinance institutions others micro and Small Enterprises private households 12 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Representatives from investing parties parti- The Advisory Group to the Board of Directors cipate in the Fund’s Investment Committee comprises representatives from Central Banks which decides on each investment. in the region. It meets annually. The role of the Advisory Group is to Representatives from the main donors provi- • Provide the Fund with better linkages to ding grants to the EFSE Development Facility local realities, concerns and needs, are members of an independent Committee, • Share local experiences, and which oversees all activities of the Facility. • Make recommendations to the Fund Mana- ger and / or Board of Directors in terms of Fund policies and operations. … and FEaturES complEmEntarity EFFiciEncy rEgional EntrEnchmEnt Combination of financial and non-financial Professional management Physical presence in the region services Professional service providers are in charge In most countries of operations, local offices The Investment Fund and the EFSE Develop- of fund management and administration. facilitate the day-to-day contact with the ment Facility work jointly in support of the They are selected through an international partner lending institutions and local stake- target group. tender process. holders. Coordination of donors and development Performance incentives Local participation finance institutions Service fees are tied to the fulfilment of Through the Advisory Group, local govern- The Board of Directors serves as a coor- performance targets regarding financial and ments, as future shareholders, get familiar with dination platform for different donors and development performance. the Fund and prepared for their future role. development finance institutions active in the region. The Fund aims at complementing existing initiatives of local governments, donors and development finance institutions and strives to harmonise efforts. 13 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Funding mEchaniSm oF invEStmEntS 1 lEvEraging 2 pooling leveraging up to seven times different types of risk capital are pooled the initial donor funds to undertake investments in one country Private A Shares Investors Senior and Notes Leveraging Tranche up to seven times Development initial and International donor funds Finance Mezzanine B Shares in different Institutions Tranche risk tranches Donor Funds Junior C Shares Tranche Donor funds used for development finance While mezzanine and senior investors invest In order to undertake investments, different initiatives in the target region are generally at regional level, donor funds can either be sources of funds representing different risk scarce in view of actual needs. The advantage earmarked to a specific country or the region tranches are pooled. They then constitute of EFSE’s funding strategy is to use these at large. Country-specific donor funds are one single source of financing for the Fund. donor funds to leverage additional funds at exclusively used for investments in one par- Consequently, the Fund uses these pooled large scale for development purposes. This ticular country, facilitating a possible later funds flexibly within each country based on is achieved by issuing different share tranches transfer of ownership to local stakeholders. the Fund’s overall investment policy. This bearing different risks: Regionally earmarked donor funds allow the approach creates efficiency gains and also 1. Public donors invest in the Junior Tranche flexible use of funds and can therefore best effectively addresses the risks associated (first loss piece), accommodate changing development finance with each investment. 2. Development finance institutions and needs in the target region. international financial institutions in the Mezzanine tranche, 3. Private investors in the Senior Tranche. 14 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS 3 riSk protEction or SuBordination Subordination mechanism in case of losses affects donor funds first, then mezzanine capital and finally senior capital In the unlikely event of losses: C Shares C Shares B Shares B Shares A Shares A Shares and Notes and Notes For the investment portfolio in each country, Leveraging private capital is only possible due however, the proportion of the different risk to the subordination mechanism in place for tranches contributing to the total amount of each country in which the Fund invests. In pooled funds remains intact. Hence, donors the unlikely event of losses, for example, due as well as the other investors hold a specific to a defaulting partner lending institutions, share of the pooled funds in the amount of the grant funds constituting the first-loss their original contribution to the Fund in tranche, i. e. C Shares, are affected first. Only nominal terms. when these are fully depleted, the mezzanine capital is affected (B Shares), being followed by holders of senior capital (A Shares). 15 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Funding mEchaniSm oF thE EFSE dEvElopmEnt Facility The EFSE Development Facility relies on two Contributions are held in a separate trust, funding sources to sponsor its activities: ensuring independence between investment 1 activities and technical assistance. For Direct grant contributions from public and private donors, the Facility will facilitate the private donors, which can either be ear- issuance of donation receipts. marked for specific activities or can be pro- vided to the Facility at large. 2 Annual share of the Fund’s income, depending on the discretion of the Board of Directors. Sergiu Guzun (right), owner of the Bakery Panilion Ana Fekete (middle), farmer, client of ProCredit Bank, Serbia, together with her mother (left) Ltd., client of Societe Generale S. A., Moldova, and daughter (right) together with his employees 16 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS rolE oF donorS Grant funds provided by donors are essential for the Fund’s operating mechanism. They constitute the risk cushion (C Shares) for private investors that otherwise would be unable to invest in high-risk countries as the target region. Through this mechanism, private capital can be leveraged, substantially enlarging the total amount of funds available for development purposes. Grant funds in the form of risk capital are Furthermore, grants can be provided to particularly relevant to allow: the EFSE Development Facility to offer • Starting Fund operations in new complementary non-financial services to the countries, and investments. In general, grant funds can • Introducing new financial instruments be earmarked to specific nations /national and products of higher risk. entities as well as activities to be financed under the Facility. Dilaver Hysa (6th from left), farmer, client of ProCredit Bank, Albania, together with his family ´ D ž emila Slabic, wedding dress maker, client of Microcredit Foundation Partner, Bosnia and Herzegovina 17 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS promoting rESponSiBlE FinancE EFSE is committed to promoting responsible financing practices in a very practical and hands-on-manner. This commitment stems from the Fund’s social mission to improve the access of less privileged population groups to finance. Furthermore, stable and integer financial markets are the foundation to the EFSE business model and are particularly crucial for the long-term invest- ment horizon of the Fund. The following are among the dimensions of Promoting sound social and environmental Fund’S and invEStorS lEvEl responsible finance that the EFSE cares about: management systems Transparency of information EFSE promotes the implementation of sound The Fund aims at maximum transparency of End-BorrowEr lEvEl social and environmental policies and man- its operations. In addition, to the official Promoting financial literacy agement systems in partner lending institu- reports submitted to the Luxembourg Super- EFSE aims to enhance the level of understand- tions. For instance, as a minimum standard, visory Agency for the Investment Fund ing of financial terms and concepts among the Fund requires each partner lending institu- Industry (CSSF), the Fund publishes quarterly its end-borrowers. The objective is to help tion to refrain from financing activities listed data on its investment portfolio, financial clients make well-informed decisions regarding in a social and environmental exclusion list. and development performance (available on the financial services they need. the Fund’s own website (www.efse.lu) as Financial SEctor lEvEl well as on microfinance information platforms. Preventing over-indebtedness Promoting responsible financial instruments The Fund aims to raise awareness of the EFSE aims to provide long-term funding in a Regular social performance monitoring consequences of over-indebtedness among manner that is conducive to developing local On a quarterly basis, EFSE monitors the its final target group through public cam- financial markets. The Fund, for example, proper use of the funds by the Fund’s partner paigns, working on industry codes of conduct provides local currency financing wherever lending institutions to the end-borrowers, to limit the debt burden to single client possible. i.e. through the collection and analysis of a households and by supporting the set-up of comprehensive set of subloan data. debt advice centers. Raising awareness of responsible finance With the aim to sensitise the public in the partnEr lEnding inStitutionS target region to the issues of responsible lEvEl finance, EFSE organises joint seminars and Social Responsibility Assessment of partner conferences with KfW and central banks lending institutions in the region. In addition to assessing the financial strength of every partner lending institution, EFSE also Active support of the SMART Campaign and examines the scope and quality of corporate other industry initiatives values and business practices employed by its The Fund was among the first signatories of the partners. The so-called Social Responsibility SMART Campaign (www.smartcampaign.com), Assessment covers the following areas, among a joint initiative of CGAP and ACCION Interna- others: Mission, Client Protection Principles tional, to promote consumer protection in and the outreach of microfinance institutions. the microfinance industry. 18 EuropEan Fund For SouthEaSt EuropE Small crEdit For Big idEaS Fund highlightS 1 5 8 contriButing to thE Facilitating accESS to coordination platForm millEnnium dEvElopmEnt capital markEtS For local and intErnational goalS By leveraging private capital through the risk StakEholdErS EFSE contributes to the Millennium Develop- protection mechanism set in place with EFSE serves as a coordination platform ment Goals, particularly to eradicate extreme donor funds and mezzanine capital from for donor agencies, development finance poverty and hunger (MDG 1) and to develop development finance institutions and inter- institutions and international financial global partnerships for development (MDG 8). national financial institutions, EFSE helps institutions, as well as local governments. local and regional financial institutions to 2 access European and international capital 9 promoting rEgional markets. local ownErShip coopEration It is envisaged that the donor funds invested With its regional approach, EFSE serves as 6 in EFSE will partly or at large be transferred a vehicle to strengthen economic cooperation SErving aS a markEt EnaBlEr to local stakeholders. In the future, therefore, between different countries. EFSE acts as risk taker to overcome prohibitive local stakeholders will become shareholders country and institutional risks, which prevent of the Fund. 3 the financial sector from serving the ultimate Balancing Social dEvElopmEnt target groups. Furthermore, the Fund plays an 10 and commErcial approach important role in anticipating market develop- catEring For thE nEEdS EFSE combines in an innovative manner a ments. By continuously adjusting its range of oF donor and govErnmEnt clear development orientation with private services and products, it pushes the develop- programmES sector efficiency and positive risk-adjusted ment finance frontier further to the benefit of EFSE allows earmarking grant funding for returns, thereby ensuring institutional the target groups. investments in specific countries and/or for sustainability. specific activities of the EFSE Development 7 Facility. Furthermore, the Fund is also open 4 EnSuring thE dEvElopmEnt to incorporate existing donor or government promoting privatE puBlic miSSion through a mix programmes that serve the ultimate target partnErShipS and lEvEraging oF inStrumEntS at diFFErEnt groups. privatE capital For lEvElS dEvElopmEnt EFSE’s development mission is continuously 11 EFSE uses donor grants as a risk cushion assured through donor representation promoting rESponSiBlE for attracting private investors for develop- at Board level and in various committees. FinancE ment purposes. Up to seven times the Furthermore, the development performance EFSE is committed to support responsible original grant contributions can be raised is constantly assessed against development finance practices and principles in the for the target group, representing signifi- targets and in the Annual Development financial markets of the target region at all cant leverage. Impact Study. levels: end-borrower level, partner lending institutions level, financial sector level and investors level. 19 www.efse.lu This publication can be downloaded or ordered from www.efse.lu/publications/brochures.html EFSE – a dEvElopmEnt FinancE initiativE SupportEd By European Investment Fund as Trustee for European Commission initiator and lEad invEStor Fund managEr Fund adviSor kfw oppenheim asset management Finance in motion gmbh Ms. Monika Beck Services S.à r.l. Ms. Sylvia Wisniwski Palmengartenstr. 5 – 9 Mr. Johann Will Eschersheimer Landstr. 6 D-60325 Frankfurt/Main, Germany 4, rue Jean Monnet D-60322 Frankfurt/Main, Germany Phone + 49 69 7431 4069 L-2180 Luxembourg, Luxembourg Phone +49 69 977 876 50-0 Fax + 49 69 7431 3490 Phone + 352 22 15 22 423 Fax +49 69 977 876 50-10 Monika.Beck@kfw.de Fax +352 22 15 22 500 S.Wisniwski@finance-in-motion.com www.kfw.de Johann.Will@oppenheim.lu www.finance-in-motion.com www.oppenheim.lu EFSE disclaimer All rights reserved. This fund is reserved for institutional investors. Units in this investment fund may not be offered, sold or transferred, directly or indirectly, in the USA or its territories or possessions or areas subject to its jurisdiction, or to citizens or residents thereof (»US Persons«) other than in accordance with the laws of the United States. The information given in this document does not constitute an offer nor a product recommendation, it is provided for individual information purposes only. No guarantee is given or intended as to the completeness, timeliness or adequacy of the informations provided herewith. Past performance is no guarantee for future results. The value of the fund and its shareclasses is calculated without taking into account any placement or redemption fees and assuming constant reinvestments of dividends. This is not a fund prospectus as specified by law. The fund prospectus is obtainable free of charge from Oppenheim Asset Management Services S.à r.l., 4 rue Jean Monnet, L - 2180 Luxembourg. © Copyright This work is copyright protected. The resulting rights, particularly with respect to translation, reproduction, communication, copying of images and tables, broadcasting, micro- filming or reproduction by other means, as well as storage on data processing equipment, remain reserved, even where such use only applies to excerpts. The reproduction of this work or parts of this work is only permissible within the boundaries of the statutory provisions, even in individual cases.
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