EIF welcomes a second RZB Group shareholder: Raiffeisen International

European Investment Fund (EIF) has brought its number of shareholders to 30 with Raiffeisen International becoming its fourth Austrian shareholder. Raiffeisen International has purchased two shares in EIF through a sale of shares by the European Investment Bank, bringing the total RZB Group shareholding to five shares. Raiffeisen Zentralbank Österreich AG (RZB) holds three EIF shares in its own right.

Raiffeisen International acts as RZB Group's steering unit for its banking and leasing subsidiaries in Central and Eastern Europe (CEE). It services both retail and corporate clients, with a particular focus on local business communities in contrast to its chief competitors which often target only international corporations.

EIF is a member of the EIB Group (EIB currently holds 66% of EIF’s equity) and works in close cooperation with the European Commission (which holds 25% of EIF equity; due to increase progressively to 30%) and, currently, 31 banks and financial institutions which hold the remaining 9%. EIF's authorised capital amounts to EUR 3 billion while own funds amount to some EUR 950m as a result of EIF’s recent 50% increase in capital.

Mr Herbert Stepic, CEO of Raiffeisen International, commented: "In becoming an EIF shareholder, we hope to build on the strong relationship which exists between EIF and RZB Group, while we see significant scope for cooperation in our key business areas. This should be seen as a positive development for SMEs across Central and Eastern Europe as EIF and Raiffeisen International work well together to enhance their ability to access finance".

Mr Francis Carpenter, EIF's Chief Executive, added: "EIF is delighted to see Raiffeisen International becoming a shareholder, adding a truly international dimension to the participation of RZB Group. This is particularly salient in light of EIF’s stated goal of reinforcing and expanding its SME support activities in Central and Eastern Europe, Raiffeisen International’s core theatre of operations.”

About Raiffeisen International

Raiffeisen International operates one of the largest banking networks in Central and Eastern Europe. A total of 18 markets of Europe's growth region are covered by subsidiary banks, finance leasing companies, two representative offices and a number of other financial service providers. The company serves about 12.7 million customers through more than 2,950 business outlets. Its network banks are among the top three banks in eight markets, being market leaders in Albania and Serbia. Raiffeisen International is the leading Western-owned banking group in the CIS. Raiffeisen International is a fully consolidated subsidiary of Raiffeisen Zentralbank Österreich AG (RZB).

About EIF

EIF, the risk capital arm of the EIB focuses on venture capital and SME guarantees and has AAA/Aaa/AAA ratings from Standard & Poor’s, Moody’s and Fitch respectively. With investments in 265 funds, and commitments in excess of EUR 4.2bn in venture and equity and EUR 11.1bn in guarantees, EIF is a major player in supporting access to finance for SMEs in Europe. EIF supports small and medium sized businesses in European Member States and Candidate countries while ensuring an appropriate return for EIF shareholders.

About EIB Group activity in Austria

In Austria itself, EIB's annual lending has averaged more than EUR 1bn over the last 5 years, reaching some EUR 1355m in 2006, of which 1070m accounted for individual loans covering a range of infrastructure projects with the remainder accounting for credit lines extended to support the financing of SMEs. EIB also has significant activities across the CEE region in which Raiffeisen International operates. Apart from RZB Group, two further Austria Banks – Bank Austria Creditanstalt and Erste Bank – are EIF shareholders holding three shares each. EIF has venture capital exposure to the Austrian SME market for some EUR 70m with an exposure of some EUR 350m in guarantees.

For further information, please contact Delphine Munro, d.munro@eif.org