Austria’s Erste Bank Group to launch €100M microfinance fund

By Matthew Fuchs

Microfinance Focus, Dec. 17, 2009: Austria’s Erste Bank Group has announced that it will launch a €100-million fund to invest in microfinance. Titled ESPA VINIS Microfinance Fund, it will be a fund-of-funds which will invest in 10 to 15 microfinance funds or bonds issued by microfinance funds with fixed maturity, said a statement.

The regional focus of the fund will be on Latin America, Central and South Asia as well as Eastern and Southeast Europe, targeting yearly returns of 4 to 6%. The fund will be primarily for institutional investors but qualified or experienced private investors will also be eligible to invest, said the statement. Erste Sparinvest, the bank’s investment products division, will manage the fund.

“Microfinance investments may not occupy the same status as stocks and bonds, but they can be an important portfolio component because they do not correlate with conventional financial instruments,” said Heinz Bednar, CEO of Erste Sparinvest.

Erste Banking Group AG is based in Austria with subsidiaries across East and Southeast Europe. Erste Sparinvest offers institutional and retail investment products, specialising in sustainable and socially-responsible investments.

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