Finnfund

Press release from EDFI, 24 November

At a meeting in Rome on 21 November 2003, the European Investment Bank (EIB) and ten members of EDFI, the Association of European bilateral development finance institutions for private sector investments in developing and reforming economies, established together the limited liability company EUROPEAN FINANCING PARTNERS (EFP).

EFP will fund private sector operations, proposed by any of the EDFI shareholders, in Africa, the Caribbean and the Pacific (ACP): EFP will be able to finance up to 75 % of a project proposal with a maximum of €25 million, while the remaining 25 % will be financed by the proposing EDFI member. The funding of EFP will be provided by the Cotonou Investment Facility through the EIB with up to €90 million and by five EDFI members with together up to €45 million: BIO (Belgium), CDC (United Kingdom), DEG (Germany), FMO (the Netherlands) and PROPARCO (France). The total finance capacity of this initiative will thus be €180 million, with €135 million provided by EFP and €45 million directly by the EDFI members.

Establishment of this joint venture is the first concrete step in the framework agreement for financial cooperation and exchange of services between EIB and EDFI members, AfD and KfW, signed in January 2003. By pooling staff and financial resources, it optimises efficiency in project appraisal and management. EDFI institutions will benefit from EIB's experience in ACP development finance and from the funding capacity of the Investment Facility. On the other hand EIB will benefit from EDFI members’ experience, local representatives and networks for identifying projects in the private sector.

EIB Vice President Michael G. Tutty said at the signing, “Stimulation of the private sector is the main thrust for alleviating poverty and creating economic growth in the ACP, the goal the Cotonou Agreement sets us. The EFP Shareholder Agreement, which we signed today, is a bench-mark of our commitment to pool, both financial and human resources, for private sector development in the ACP.”

EDFI President and FMO's CEO R. Michael Barth said: “EFP is an excellent example of coordination of national and European development policy in the field of private sector development in the ACP region. It is a milestone that represents the excellent cooperation between the EIB and the EDFI institutions. I am convinced that EFP will make a valuable contribution to private sector development.”


For further information about EDFI, please contact Jan Rixen, tel. +32 2 230 2369, firstname.lastname@edfi.be (www.edfi.be).

For further information about the EIB’s activities in ACP, please contact Bram Schim van der Loeff, tel. +352 4379 3134, schimvan@eib.org or visit (www.eib.org/lending/acp)


Also Finnfund is a member of EDFI. EDFI is a group of thirteen bilateral European development finance institutions, whose members provide long term finance for private sector enterprises in developing and reforming economies.

For further information about EDFI and Finnfund, please contact Jukka Ahmala, tel. +358 9 3484 3316, email firstname.lastname@finnfund.fi