Approach

The Fund seeks to invest in certain types of municipal infrastructure in the Western Balkans through senior loans or funded and unfunded risk participation agreements with Participating Banks. In this way, the Fund aims to strengthen the social and economic development in the region by providing sustainable financing to infrastructure projects.

The comprehensive approach of MIDF to municipal infrastructure finance comprises  a combination of financial instruments, an Investment Grant Facility and Technical Assistance to Participating Banks as well as municipalities and utilities.

Cooperating with MIDF

Eligible Participating Banks are selected through a staged process conducted by the investment manager. The MIDF investment manager establishes contacts with potential Participating Banks. Banks that fulfil eligibility criteria will undergo due diligence, during which an in-depth review of the economic, financial and market position as well as of the social and environmental framework is performed. In case of positive decision by MIDF, funded or unfunded risk participation instruments or credit instruments are negotiated with the prospective Participating Bank.

After signing, the financing instruments and a close monitoring of the partner institution takes place during the lifetime of the investment. 

Participating Banks use the financial instruments to finance municipal infrastructure projects which are conducted by municipalities and other eligible institutions.

In addition to the various lending instruments, MIDF may offer Technical Assistance to Participating Banks or municipalities and utilities.

For more information, please see "Contact".