EFSE – The European Fund for Southeast Europe

The European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in the Southeast Europe region and in the European Eastern Neighbourhood region through the sustainable provision of additional development finance, notably to micro and small enterprises (MSEs) and private households, via qualified financial institutions.

EFSE is more than just a fund: Its public-private partnership (PPP) structure has made the European Fund for Southeast Europe an international role model for intelligent and innovative development policy in the 21st century. The PPP approach enables EFSE to mobilise funding from private institutional investors to top up international public donor funding for development finance. In addition, it provides a platform for the coordination of donor activities in its regions.

EFSE generates measurable impact :

• Supporting micro and small enterprises as the backbone of local economies, thereby contributing to income generation and employment creation
• Satisfying the basic need for decent shelter
• Strengthening local financial markets

Innpact supported the design, structuring and implementation of the fund and provides continuous support to the Board of Directors as a General Secretary.

• Name: The European Fund for Southeast Europe SA, SICAV-SIF
• Inception: 2005
• Domicile: Luxembourg
• Initiators: European Investment Bank, KfW Development Bank
• Fund Manager: Oppenheim Asset Management Services S.à r.l, Luxembourg
• Fund Advisor: Finance in Motion GmbH, Frankfurt/Main
• Sector: Microfinance
• Geographic Focus: Southeast Europe and the European Eastern Neighbourhood Region
• Target Financial Intermediaries:  Lending institutions including commercial banks, microfinance banks, microcredit organisations and non-bank financial institutions such as leasing companies.
• End‐Beneficiaries: Micro and small enterprises, private households
• Financial Instruments: Medium to long‐term senior loans, subordinated loans, term deposits, subscriptions to bond issues, certificates of deposit, syndicated loans, stand‐by‐letters of credit, guarantees, equity/quasi‐equity participations
• Non‐Financial Services: Technical assistance services through the EFSE Development Facility
• Type: Debt Fund
• Outstanding portfolio: EUR 883.2 million
• Info: www.efse.lu