OeEB Reports Over EUR300 Million in New Business for 2024

In a positive development for the OeEB, the Oesterreichische Entwicklungsbank AG announced a successful conclusion to its 2024 fiscal year, reporting a total of approximately EUR305.2 million in new loans and investments. In addition, the bank allocated over EUR602,000 towards technical assistance programs aimed at enhancing development outcomes.

The bank, which operates under the auspices of the Federal Ministry of Finance (BMF), has made significant strides in financing private sector projects across developing and emerging markets, thereby contributing to economic growth and development. The OeEB's strategic focus areas, including Green Finance, gender equality, private infrastructure, and support for micro, small, and medium enterprises (MSMEs), were pivotal in achieving these results.

As of the end of 2024, the total portfolio of the OeEB stood at EUR1.74 billion. The bank highlighted that more than 26% of its new project financing was directed towards the least developed countries (LDCs), with a further 24% allocated to initiatives within Africa. This represents a notable increase from the previous year, demonstrating the bank's commitment to addressing pressing global challenges, including climate change and gender disparities.

OeEB's board member, responsible for market operations, emphasized the importance of the bank's role during uncertain times. The institution aims to provide essential capital needed to mitigate economic downturns and strengthen resilience in partner countries. There remains considerable pressure on global financing due to regional conflicts, such as those in Ukraine and the Gaza Strip, as well as the ongoing impacts of climate change.

In 2024, the OeEB successfully finalized investments in an impact fund, a collaborative effort with Bank Gutmann, and established a new climate impact fund in partnership with another Austrian entity. This initiative is designed to attract private capital from institutional investors for climate-related projects.

In the newly launched strategy cycle for 2024 to 2028, the OeEB has set ambitious goals, aiming for an average of 20% of new business to be focused on LDCs and 25% on Africa. The bank also plans to increase its emphasis on climate financing, with expectations that 50% of new business during this five-year period will be directed towards climate-related projects.

Last year, notable financing included loans for companies within the textile and clothing sector in Bangladesh, support for an agricultural trading company aiding small farmers in Africa, and funding for microfinance institutions that prioritize financing for women in India and Ecuador. The OeEB also participated in a climate fund in Africa and supported the production of plywood for the furniture industry in Nigeria through its African-Austrian SME Investment Facility.

The OeEB concluded 2024 with a net profit of EUR7.2 million after taxes, compared to EUR4.2 million in 2023. After allocations to reserves, the annual profit stood at EUR5.3 million, an increase from EUR3.3 million the previous year, while operating profit rose to EUR9.2 million from EUR5.9 million.

The OeEB's annual report is available online for further details on its performance and strategic objectives.