Sustainable investment in practice: IFC and EOS launch platform for non-performing loans and distressed real estate in Eastern Europe.
- EOS and IFC boost economy in Eastern Europe with shared platform
- Purchase and processing of non-performing loans and distressed real estate in Croatia, Serbia, Romania, and Bosnia and Herzegovina
- Investment volume of €129 million over three years
- EOS underpinning social, environmental and governance aspects in the NPL business
Is it possible to help restore liquidity to struggling companies and stimulate ailing economies, while taking account of social and environmental risks?
EOS and World Bank affiliate “International Finance Corporation” (IFC) have stepped up to prove that it can be done.
Joint NPL platform for Eastern Europe.
Liquidity for struggling economies.
EOS fleshes out its sustainability credentials.
A crucial aspect of the collaboration with IFC is to take account of environmental, social and governance aspects when selecting and processing NPLs and distressed real estate.
Sustainability risks identified before purchase.
Collaboration based on partnership.
As part of its due diligence process, the IFC conducted a very thorough and meticulous investigation into the EOS Group and its working methods, regulations, internal processes and ESG provisions. Only after this review had delivered a positive result from the IFC’s perspective was it possible to set up the platform for the collaboration. To this end, a completely new investment structure had to be developed for EOS, says Jan Ottenbreit, Director Transactions and Asset Management at EOS Group. The need to identify competent service providers and get them on board, compile contracts and set up processes has been “a huge yet highly instructive experience,” says Jan: “It was a bit like building a house, where you don’t buy a prefabricated house but construct it yourself brick by brick. It’s a lot of hard work but it feels all the better afterwards.”
It has been a success for EOS, for the IFC, but also for the objective of sustainable and fair receivables management.