EFSE MSME (IFC-43335)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Mar 25, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
The European Fund For Southeast Europe S.A., SA
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.33 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 40.33 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS May 2, 2020

Disclosed by Bank Feb 21, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to IFC website, the project is an investment of US$40.3 million in the European Fund for Southeast Europe (EFSE). EFSE is a collective debt investment vehicle that channels long term resources for on-lending to micro and small businesses and private households through banks and microfinance institutions in Europe and Central Asia. It will help bridge the micro, small and medium enterprises (MSME) gap in ECA and shore up access to finance for MSMEs and low-income housing loans. 

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

Stakeholders' effect (Access to MSME finance): The most significant, expected Stakeholders' effect is increased access to MSME finance through long-term lending to banks and microfinance institutions. Since inception, the Fund has generated, via on lending by the financial intermediaries funded, more than 1 million sub-loans totaling EUR7.6 billion. This has directly contributed to the lessening of the MSME finance gap in the region, which remains underserved by local banks or any other alternative sources of capital.

Market creation (Integration): IFC anticipates that the Project will enhance connectivity and integration among public and private investors by demonstrating to the wider investor community that the MSME segment poses bankable investment opportunities representing an attractive risk-reward profile.

Market creation (Inclusiveness): IFC anticipates that the Project can foster greater inclusiveness in the market through expanding microfinance and banking services, through efficient underwriting, use of fintech, responsible finance practices, and innovation to reach underserved segments.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Finance in Motion GmbH Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Finance in Motion GmbH
Jasminka Bergert
Manager
+49 69 271 035-140
j.begert@finance-in-motion.com
Carl-von-Noorden-Platz 5, 60596 Frankfurt am Main, Germany
www.finance-in-motion.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works