Promotional loan to OeEB to extend its participation in MEF

completed

FC funding loan to the Austrian Development Bank to extend its participation in the Microfinance Enhancement Facility (MEF) until 2020. The Microfinance Enhancement Facility (MEF) was founded in Berlin on February 5, 2009 in the presence of World Bank President Mr. Zoellick and former Federal Minister Ms. Wieczorek-Zeul to cushion the refinancing bottlenecks caused by the global financial crisis. Due to the timely implementation - only three months passed from the idea to the closing and launch of the MEF - and the high level of mobilization, the founding of the MEF had an important signaling effect and was able to make a significant contribution to stabilizing the microfinance sector during the financial crisis. MEF was originally intended as a temporary crisis facility with a term of 6 years. As a result, the mezzanine investors (B-shares), including the OeEB, initially committed their funds for a limited term of up to 6 years (until February 2015). Since it has since become apparent that there is a longer-term need in the market for a supplementary global MFI refinancing facility such as the MEF, the investors agreed to extend the term of the funds until 2020. In order to be able to extend its commitment for the B-shares of the MEF (mezzanine tranche), the OeEB asked KfW to grant it a FC promotional loan to refinance its participation in the MEF.