OeEB closes the 2024 financial year with a very satisfactory result and numerous partial successes in achieving its strategic goals. On behalf of the Austrian Federal Ministry of Finance (BMF), the specialist bank provided loans and equity investments totalling around EUR 305 million for selected private sector projects in developing and emerging countries, which make an important contribution to strengthening the private sector in terms of development policy and the economy.
In line with its strategy, OeEB once again succeeded in implementing significant projects in its strategic areas of green finance, gender equality, private infrastructure and industry, as well as strengthening micro, small and medium-sized enterprises, and mobilising further capital from private investors. The total portfolio amounted to EUR 1.74 billion at the end of the year. OeEB provided more than EUR 602,000 from its own funds for measures to strengthen developmental effects.
"The past financial year was a very satisfactory one for us. A new business volume of over EUR 290 million in debt financing and around EUR 15 million in equity investments and the African-Austrian SME Investment Facility+ is a remarkable achievement. In addition, the overall portfolio of EUR 1.74 billion shows an extremely positive development in terms of the targeted, measured developmental effects and economic sustainability. We see that our mandate and our strategic objectives are in tune with the times and address the multiple challenges across the board, such as mobilising urgently needed capital to implement important projects while taking climate and gender into account as cross-cutting issues. It is very pleasing that in 2024, more than 26% of the newly concluded project volumes were implemented in the least developed countries and a total of 24% in Africa, which represents a significant increase compared to the previous year. A further 38% was invested in projects that contribute to climate protection. The last investments in an impact fund of funds, a cooperation project with Bank Gutmann that has existed since 2019, were also successfully finalised in 2024 and a climate impact fund of funds was set up with another Austrian partner, through which private funds from institutional investors are mobilised to implement climate-relevant projects," says Sabine Gaber, who is responsible for the market-side business areas.
"Especially in uncertain times, development banks like OeEB have a very important countercyclical role to play. We provide the capital urgently needed to overcome crises and thus help to cushion economic downturns and strengthen the crisis resilience of our partner countries," says Executive Board Member Steffen Suhany, who has been responsible for the bank's risk management since June 2024, coming from the German development bank. The environment for financing projects remains challenging. Regional conflicts such as those in Ukraine and the Gaza Strip are exacerbating an already difficult geopolitical and geo-economic environment. At the same time, the consequences of climate change are increasing the pressure to adapt economic structures more quickly to the changing conditions. "We are proud that, with prudent risk management, we were able to achieve these good results despite the challenging environment," emphasises Suhany.
Responsible projects
In the newly launched 2024-2028 strategy cycle, OeEB has set itself the goal of increasing its involvement in Least Developed Countries (LDCs) and Africa. On average, 20 percent of new business is to be concluded in LDCs and 25 percent in Africa. The new strategy also places an even greater focus on climate financing. On average, 50 percent of new business over the 5-year strategy cycle is to be allocated to climate-eligible projects.
Last year, for example, loans were granted to companies in the textile and clothing sector in Bangladesh, to an agricultural commodities trading company that supports small farmers in Africa, to microfinance institutions with a focus on financing for women in India and Ecuador and to production companies in Eastern Europe. In addition, OeEB participated in a climate fund in Africa on behalf of the BMF and used funds from the African-Austrian SME Investment Facility (AAIF+), which is provided by the BMF, to support the production of plywood panels for furniture production in Nigeria. 2024 also saw the launch of the Global Gender-Smart Fund, which emerged from a long-standing partner fund of OeEB and was co-structured by OeEB. In addition to financial resources, OeEB also provided technical assistance funds, which are intended to strengthen the developmental impact of the investments.
Business results
The 2024 financial year closed with a net profit after taxes of EUR 7.2 million (2023: EUR 4.2 million) and a net profit after allocation to reserves of EUR 5.3 million (2023: EUR 3.3 million). The operating profit amounted to EUR 9.2 million compared to EUR 5.9 million in the previous year.