Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) faced the challenge of enhancing access to finance for small and medium-sized enterprises (SMEs) in the Western Balkans, a region characterized by limited financial resources and support for emerging businesses. To address this issue, EIF signed a 14.5 million subscription agreement with the European Bank for Reconstruction and Development (EBRD) to establish the Western Balkans Enterprise Expansion Fund (ENEF). This fund is part of the broader Western Balkan Enterprise Development and Innovation Facility (WB EDIF), which aims to provide development and expansion capital specifically to SMEs with high growth potential.
The tailored solution provided by EIF through ENEF focuses on offering equity, quasi-equity, and convertible bonds to selected investee companies, thereby improving their access to bank lending and reducing borrowing costs. The EBRD plays a crucial role as the largest single investor and investment adviser for ENEF, also providing parallel co-financing through its Local Enterprise Facility (LEF). This collaborative approach not only enhances financial support but also synergizes with other components of WB EDIF, including the Enterprise Innovation Fund (ENIF) and a regional Guarantee Facility.
As a result of these initiatives, the WB EDIF has successfully signed agreements totaling 60 million under the Guarantee Facility with local banks in Albania, Bosnia and Herzegovina, and Kosovo, directly supporting SMEs in these countries. The overall impact of the WB EDIF is significant, with 145 million in capital mobilized to provide direct financing for SMEs, fostering innovation and growth in the region. This initiative marks a groundbreaking effort by international financial institutions to collectively support the private sector in the Western Balkans, demonstrating a commitment to regional economic development and the creation of a sustainable venture capital market.