Last update: 05/09/2019

Erste Social Finance Holding GmBH

Erste Social Finance Holding (ESFH) provides integrated investments in social infrastructure, social services, human capital & skills, innovation, microfinance and social economy in CEE region. The purpose of the enterprise is to disseminate prosperity and enable access to financial services for everyone. Via its subsidiaries it shall directly or indirectly aim to achieve the primary objectives:

  1. Improving financial stability for people on low incomes and their access to financial services

  2. Enabling job creation and self-employment

  3. Promoting social innovation and increasing the impact of social organizations

ESFH establishes subsidiaries operating in social finance categories such as microfinance, developmental finance, inclusive finance, social enterprise lending & investing, impact investing, as well as special financial instruments, e.g. social impact bonds / payment by results or impact funds in the territory of Central and Eastern Europe (CEE).

Investments shall deliver tangible social or environmental impacts contributing to United Nations Sustainable Development Goals (UN SDGs) alongside with positive financial returns. The social and economic impact of its activities is regularly measured using methodology provided by the Institute Nonprofit management of University of Economics in Vienna.

ESFH will gradually take over the activities of Erste Social Banking in CEE such as financing and educating/mentoring:

  1. starting entrepreneurs creating new jobs,

  2. non-profit organizations and social entrepreneurs with the aim to enlarge their positive impact for the society

  3. people at risk of poverty, marginalized or excluded groups fostering their financial stability and inclusion

ESFH aims for positive financial results as a precondition for sustainable business operation with all the profits being reinvested. Returns below the market rates are acceptable in order to achieve the primary objectives; nevertheless the total investment portfolio of ESFH shall produce positive results above inflation in mid-term horizon. The shareholders intend to reinvest any profits earned in the company or its subsidiaries.

ESFH is currently owned by Erste Group Bank (60%) and ERSTE Foundation (40%)

Balance sheet 4,4 mln EUR.

Owns 51% of BCR Social Finance , Romanian microfinance company with 90 employees

 

Belvedere 1, 1100 Vienna, Austria