MFP-BOP Mikrofin (IFC-50271)

Countries
  • Bosnia and Herzegovina
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
C
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
May 19, 2025
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
Mikrofin d.o.o. Banja Luka
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Finance
  • Industry and Trade
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)
$ 20.00 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 24, 2025

Disclosed by Bank Mar 28, 2025

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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 the Bank’s website, the proposed investment consists of an up to 4-years senior loan of EUR20 million to Mikrofin d.o.o. Banja Luka, a private microfinance institution focused on MSE, agriculture and lending to individuals in Bosnia and Herzegovina (BiH). The proposed investment will support the Company's lending program to micro enterprises with 50% dedicated to Women-owned Micro Enterprises (WMEs) and 25% to support climate finance (energy efficiency), with the majority of exposure expected to be focused on home improvement loans. The loan will be provided in two tranches of up to EUR10 million each.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Project’s proceeds will be entirely used to finance micro and small enterprises (MSEs) in Bosnia and Herzegovina. E&S risks of such investment are low, therefore, the project has been classified as FI-3 according to IFC’s Sustainability Policy. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The Project consists of a senior A loan of up to EUR20 million to Mikrofin, provided in two tranches, to support the expansion of the Bank’s WMEs and EE portfolio in BiH. 

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Mikrofin, established in BiH in 1997, is a leading microfinance institution focused on providing financial services to micro and small enterprises, as well as individuals who lack access to traditional banking. The company offers a comprehensive range of products, including microloans, business loans, agricultural loans, and consumer loans, all aimed at fostering economic development and enhancing the living standards of its clients. As of June 2024, Mikrofin reported EUR 228 million in assets, securing its position as the top player in the country with a 33% market share. The institution operates through 106 branches and employs over 390 staff members.

Mikrofin is fully owned by MF Grupa, a holding company entirely controlled by the NGO Citizen Association Mikrofin. The NGO, founded by five individuals who are actively involved in various governance roles within the group, is represented by Aleksandar Kremenovic, who serves as Mikrofin's Chairperson and the CEO of MF Banka.


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.

MKD MIKROFIN DOO
Braco Erceg
Investor Relations Manager
+387 51 230 343
berceg@mikrofin.com

https://mikrofin.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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

How it works

How it works