Enterprise Expansion Fund II (ENEF II)

Overview
What we offer
Eligibility criteria
Advisory Support

Equity, quasi-equity or tailor-made debt financing from the ENEF II

Together with the EU, CDP, KfW and Banca Intesa Beograd, the EBRD launched Enterprise Expansion Fund II (ENEF II), an investment fund for the Western Balkans with the idea to fill in the financing gap that local SMEs and mid-caps face when looking for equity, quasi-equity and tailor-made debt financing.

The EBRD acts as the investment advisor of the fund and is responsible for identifying, structuring and executing suitable investments. It also co-invests alongside ENEF II.

ENEF II aims to identify companies from the Western Balkans with the potential to become leaders in their fields.

It supports them with tailor-made financing and technical assistance, including improving their performance in environmental, social and governance areas.

Do you experience strong growth and require tailor-made financing to expand your operations?
Do you need expert advice and technical assistance to improve your competitiveness?
Do you want to bring your company to the next level by working with ENEF II and EBRD?

A broad range of financing instruments

We offer minority equity investments, various quasi-equity instruments (preferred shares, mezzanine loans, convertible loans, etc.) and more traditional senior loans. Often SMEs do not have access to such instruments from other providers of financing.

Technical assistance

We combine the financing instrument with pre- and post-investment business advice and technical assistance on a range of topics, including strategy, operations, sustainability, digitalisation, etc.

The opportunity to work directly with ENEF II and EBRD

Developing a direct relationship with the EBRD provides access to long-term capital and a strong financing partner.

Contact us

If you are interested in learning more about ENEF II, please, email the dedicated ENEF II team or contact the EBRD Resident Offices in Belgrade and Pristina.

Email:

enef@ebrd.com

What is ENEF II?

ENEF II is an investment fund registered in Luxembourg with the objective to provide equity, quasi-equity and tailor-made debt instruments to SMEs and mid-caps in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia.

ENEF II raised EUR 71 million of capital from the following investors: EBRD (EUR 19 million), Cassa Depositi e Prestiti (EUR 19 million), the EU (EUR 16 million), Kreditanstalt für Wiederaufbau (EUR 10 million) and Banca Intesa Beograd (EUR 7 million).

In addition to providing suitable financing instrument, ENEF II aims to support its investee companies in improving their performance in the environmental, social and governance areas.

How does ENEF II work?

The EBRD serves as the investment advisor of ENEF II. It relies on a dedicated team of investment professionals based in Belgrade and Pristina, who are responsible for identifying high-growth SMEs and mid-caps from the Western Balkans and developing a suitable financing instrument to support their development.

ENEF II aims to invest in up to 25 companies across various sectors (agribusiness, retail, manufacturing, services, technology, etc.).

The individual investments per company range between EUR 1 million and EUR 10 million. Once the initial investment is made, the investee companies could receive follow-on funding.

The financing instrument for each company is structured to meet the specific needs of the company to support its continued growth.

ENEF II specialised in quasi-equity instruments and sustainability-linked loans. IT is also able to offer minority equity investments (where suitable).

Most investments are co-financed by ENEF II and EBRD.

Are you a local company that meets the criteria of the EU SME definition, or a mid-cap that operates in Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia?
Do you have a proven track record in growing your business and a solid market position?
Do you need tailor-made financing (equity, quasi-equity or tailor-made debt) between EUR 1.0 million and EUR 10.0 million for a variety of uses?
Do you want to benefit from working with an investment fund advised by the EBRD?

If the answer to the above is Yes, you could be eligible for financing by ENEF II.

Finance available for:

Capital expenditure, working capital needs, acquisitions, entering new markets

Eligible instruments

Senior loans, including sustainability-linked loans, junior loans, convertible loans, mezzanine loans, preferred shares, ordinary shares (minority interest only)

Companies that receive financing from ENEF II are also eligible to benefit from various kinds of pre- and post-investment advisory support from local consultants or international advisors on a range of topics related to strategy, operations, digitalization, product development and marketing, sustainability, etc.

This technical assistance is supported by donor funding provided by the EU and Italy (through the Small Business Impact Fund), which covers the majority of the costs related to engaging the consultants.

These advisory services allow ENEF II to support its investee companies in improving their competitiveness and provides valuable demonstration effects to the business communities in the Western Balkans.

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