The Microfinance Bank is owned by IFC, Commerzbank AG (Germany), EBRD, FMO (Netherlands), IMI (Germany) and KfW (Germany) each in the amount of $2,000,000 for a 16.67% share in the common equity of the bank. IMI, in which IFC has a 13.64% share, is a Frankfurt-based investment company specializing in microfinance.

The total project cost is up to EUR 8,000,000 (but not to exceed the equivalent of $8,000,000 at commitment) consisting of two tranches: Tranche A (a regular tranche) in the amount of up to EUR 4,000,000; Tranche B (a stand-by tranche) in the amount of up to EUR 4,000,000. The use of proceeds is to provide sub-loans to eligible sub-borrowers. Sub-loans repaid and/or prepaid to be used solely for sub-loans to eligible sub-borrowers in accordance with the terms of the loan.

8.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	8.0
Equity

* These investment figures are indicative

The Bank is headquartered in Belgrade and has 8 branches around the country.

MFB is a category FI Type 1 project according to IFC’s environmental and social review procedure. IMI and project technical partner IPC have developed an environmental management framework to ensure that financial institutions in which IMI invests and IPC manage have appropriate Environmental Management Systems (EMS). IFC''s Environment Division has approved this environmental framework. Under the framework, IPC, IMI and MFBY has developed an EMS, requiring activities financed to comply with the applicable environmental, health and safety legislation and standards of Serbia & Montenegro and IFC’s Microfinance Exclusion List. Implementation of the EMS may involve an orientation in cleaner production and a focus on clients presenting the greatest environmental risk and opportunities. MFB provides an annual environmental performance report to IMI/IPC.


Location of environmental documents in locally affected community
Bank’s headquarters in Belgrade.

Since its inception in 2001, MFB has had strong developmental impact by rapidly expanding its services to micro and small entrepreneurs in Serbia and Montenegro. The developmental impact of commercially-run micro and small business credit programs on post-conflict transition economy populations with little or no access to formal credit institutions has been well-demonstrated by IFC's more mature microfinance investments in several countries.