Project detail - MF Banka a.d. Banja Luka

MF Banka a.d. Banja Luka

Status: Approved investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

MF Banka is a specialized SME bank, the only of its kind in Bosnia and Herzegovina, operating just above the MFI-segment. MF Banka is well-suited to service its target clients. Compared to MFIs, MF Banka can offer the whole range of banking services (including deposits). Compared to other banks, MF Banka has a different approach proactively looking for clients going out in the field being able to quickly offer loans suiting the clients’ needs. The mother company of MF Banka is Mikrofin, an MFI, which is a client of FMO since the beginning of 2015 when it received a senior loan of €5 million.

What is our funding objective?

FMO and the German Development Bank (KfW) have taken a 23.14 percent equity stake in the Banja Luka MF Banka. KfW and FMO both receive an equal share of 11.57 percent. The new shareholders will facilitate MF Banka to grow its loan portfolio and increase its outreach to Bosnian SMEs. KfW and FMO will also support MF Banka to further professionalize its organization and business.

Why do we fund this investment?

The shared ownership brings the stability and security of the bank to a higher level. FMO and KfW are expected to bring in the know-how, experience, best international practices and principles of risk management. It positively influences the bank’s reputation, giving it wider opportunities and access to additional financial sources.

Website customer/investment
http://www.mfbanka.com
Region
Europe & Central Asia
Country
Bosnia and Herzegovina
Sector
Financial Institutions
Effective date
12/30/2015
Total FMO financing
EUR 2.95 MLN
Funding
MASSIF
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
C