East European Risk Taking Facility (EERF)
EERF would offer funded & unfunded risk participations for Banks belonging to the Raiffeisen International Group in Eastern Europe (EE) with a total volume of 1 bn EUR. These risk participations will set free regulatory capital of the banks and make that capital available in order to increase lending to SME in the region. In order to leverage scarce public funds EERF will be a multilayer structured vehicle. Meaning it will be funded by junior (e.g. grant funding from Donors), senior and mezzanine tranches funded by DFIs and private investors.
With total assets under management of 76 billion EUR, the Raiffeisen Bank International Group is one of the largest and most responsible providers of funding for SME in EE. Providing loans to SME is becoming more challenging with new regulations ahead (i.e. “Basel 3).and Raiffeisen sees a huge demand for unfunded and funded risk participations in the near future, which will be difficult to access without donor support.. By offering risk sharing facilities for Raiffeisen Banks in the region, EERF gives small and medium-sized enterprises indirect access to the capital market and its institutional investors and enables Raiffeisen Bank to provide more loans to SME. This financial support helps SME to grow and create more jobs and income locally
Raiffeisen International Bank-Holding AG