The following WB EDIF financial instruments are in place in Bosnia & Herzegovina
WB EDIF Guarantee Facility
EIF signed an agreement with ProCredit Bosnia & Herzegovina in December 2013 for a portfolio of EUR 20m, the instrument is currently being absorbed very well by the market.
Enterprise Expansion Fund (ENEF)
Krajina Klas: is a bakery specialised in the production and retail of fresh and frozen bread, pastries and other bakery products.
The ENEF investment, including co-financing by the EBRD, amounts to EUR 2.0m, which will be used to fund the expansion of operations.
The following WB EDIF Support Services projects are in place in Bosnia & Herzegovina
Small Business Act (SBA) monitoring: this project, run by the OECD, provides a monitoring tool which allows for a transparent and comparative way of ensuring that WB EDIF’s reform priorities can create regional synergies between government and donor efforts in supporting SMEs. The upgraded SME Policy Index methodology aims to deepen the assessment, to better capture policy performance and provide more detailed recommendations for Bosnia Herzegovina.
For more information please visit: http://www.oecd.org/globalrelations/smallandmedium-sizedenterprisessmepolicyindex.htm
Road to Europe – Program of Accounting Reform And Institutional Strengthening (EU-REPARIS): this project, run by the World Bank, supports the implementation of corporate financial reporting frameworks in line with the EU standards in the countries of Southeast Europe with a view to promoting enhanced availability, transparency and reliability of financial information. Sound CFR provides systematic information to business management (better monitoring leads to greater efficiencies), supports a business environment that is conducive to access to finance, and helps reduce the burden of tax compliance. REPARIS furthermore provides essential support to beneficiary countries to help them ensure their financial reporting frameworks are in line with requirements of the EU acquis communitaire.
Advice for Small Businesses (ASB); this project, run by the EBRD, helps SMEs to improve, grow and develop to a point where they are better able to attract investment. ASB provides direct support to SMEs in the WB economies by improving investment readiness of companies, introducing international best practices in accounting and financial management, strengthening human capital and expertise, enhancing innovation and assisting with export compliance standards, to name a few activities
For more information please visit: http://www.ebrd.com/work-with-us/advice-for-small-businesses/bosnia-and-herzegovina.html
Support Services management and coordination; the EIB has been nominated as the WB EDIF Support Services Manager and Coordinator; whereby it centralises and harmonises monitoring, reporting and communication strategies, as well as measuring impact and identifying delivery gaps in the market.
On Dec 28, 2015 the second ENEF deal was signed – a EUR 2 million quasi-equity investment in Krajina Klas co-financed on pari passu basis by EBRD and ENEF. Krajina Klas is the leading bakery and confectionery company in the Republika Srpska (RS), entity of Bosnia and Herzegovina (BiH). The proceeds of the investment will be used to assist the Company’s production capacity and retail expansion by increasing its number of own stores over the next three years. The ENEF co-investment will enable strong post-investment support for the achievement of the agreed Value Creation Plan.
The Company has been present in the market for 20 years with a successful track record of growth from a family-house bakery to a leading bakery and confectionery producer. The Company has two production sites and operates 25 retail bakery and confectionery stores across BiH, in addition to wholesale distribution and large retailers. Krajina Klas produces a variety of bakery and confectionery items, from cakes, ice cream, pizza, focaccia to fresh pasta in dedicated bakery shops and bakery cafés. The Company is constantly innovating with two new products introduced on average per month, resulting in high customer interest and satisfaction (contrary to the rest of small bakeries with standard product range).