FMO and the German Development Bank (KfW) acting on behalf of the German Federal Government together have taken a 23.14 per cent equity stake in the Banja Luka MF Banka. KfW and FMO both receive an equal share of 11.57 percent. The total capital of MF Banka is 40.8 million BAM (EUR 20.9 million).
MF Banka is a specialized Small and Medium Enterprises (SME) bank, the only of its kind in Bosnia and Herzegovina, operating just above the MFI-segment. The new shareholders will facilitate MF Banka to grow its business and increase its outreach to Bosnian SMEs. KfW and FMO will also support MF Banka to further professionalize its organization and business.
The Chairman of the Supervisory Board of MF Banka, Aleksandar Kremenović, stresses MF Banka’s ambition to grow into the most efficient banking platform for SMEs in Bosnia and Herzegovina. The Bank will continue to provide fast, affordable and transparent financial services to SME and retail clients.
Christoph Tiskens, Director for South-East Europe and Turkey in KfW, said that the purchase will support MF Banka in its business to serve its clients in the SME segment of the economy. Providing financing to this crucial segment of the country’s economy is a very important instrument for the development of the economy and the creation of employment.
Linda Broekhuizen, CIO of FMO, said: “MF Banka’s work of supporting local entrepreneurs and creating impact by investing in SMEs fits very well within FMOs strategy as we value entrepreneurship as one of the main drivers for economic development.”
The shared ownership brings the stability and security of the Bank to a higher level. Investors 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.
