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INTERNATIONAL FINANCIAL INSTITUTIONS TEAMING UP TO SUPPORT LOCAL BUSINESSES WITH PRIVATE EQUITY FINANCING IN THE CAUCASUS.
/ARKA/
APRIL 2, 2012
YEREVAN
YEREVAN, April 2. /ARKA/. The EBRD (European Bank for Reconstruction
and Development), IFC (International Finance Corporation, a member
of the World Bank Group), FMO (the Netherlands development bank)
and BSTDB (Black Sea Trade and Development Bank) will invest in the
Caucasus Growth Fund. This new fund is backed and managed by SEAF
(Small Enterprise Assistance Funds), a global fund manager, EBRD says
in a statement posted on its official website.
International Financial Institutions (IFI) are initially providing
US$40 million and the Small Enterprise Assistance Funds (SEAF)
will contribute an additional US$2 million to the SEAF Caucasus
Growth Fund, with a target size of US$70 million. It will be the
first institutional-quality fund dedicated to providing debt and
equity capital to small and medium enterprises (SMEs) in Armenia,
Azerbaijan and Georgia.
Through their collaboration, the international financial institutions
are supporting private equity investments in the SME segment, which
is the backbone of the Caucasus economies and plays a key role in job
creation. The Fund will invest across a range of industries, with
particular focus on consumer and business services, agribusiness,
distribution, energy and retail, which remain under-served by other
capital providers.
"Fostering entrepreneurship in the countries that strive towards
a market economy is the cornerstone of the EBRD's strategy. The
overwhelming majority of the EBRD's activities support private sector
developement. The EBRD is delighted to join forces with its partner
IFIs and SEAF to support the development of the private equity sector
in the region. This project will bring much-needed resources and
knowledge to support the development of prospective businesses," said
Paul-Henri Forestier, EBRD Director for Caucasus, Moldova and Belarus.
Tomasz Telma, IFC Director for Europe and Central Asia, said:
"Lack of capital is one of the most serious challenges for small and
medium enterprises in the southern Caucasus. Through its investment
in the SEAF Caucasus Growth Fund, IFC is helping address an important
obstacle to these small and medium enterprises, which represent the
backbone of economic diversification and employment."
"Support towards the development of small and medium enterprises in
the Black Sea region is a strategic priority for BSTDB, a regional
development institution. The SEAF Caucasus Fund will facilitate access
to affordable capital for competitive private businesses in Armenia,
Azerbaijan and Georgia and foster good business practices and knowledge
transfer. The project is also a demonstration of the positive synergies
between development partners in promoting sustainable growth and job
creation through private sector development in the region" said Andrey
Butin, BSTDB Director for Financial Institutions.
/ARKA/
APRIL 2, 2012
YEREVAN
YEREVAN, April 2. /ARKA/. The EBRD (European Bank for Reconstruction
and Development), IFC (International Finance Corporation, a member
of the World Bank Group), FMO (the Netherlands development bank)
and BSTDB (Black Sea Trade and Development Bank) will invest in the
Caucasus Growth Fund. This new fund is backed and managed by SEAF
(Small Enterprise Assistance Funds), a global fund manager, EBRD says
in a statement posted on its official website.
International Financial Institutions (IFI) are initially providing
US$40 million and the Small Enterprise Assistance Funds (SEAF)
will contribute an additional US$2 million to the SEAF Caucasus
Growth Fund, with a target size of US$70 million. It will be the
first institutional-quality fund dedicated to providing debt and
equity capital to small and medium enterprises (SMEs) in Armenia,
Azerbaijan and Georgia.
Through their collaboration, the international financial institutions
are supporting private equity investments in the SME segment, which
is the backbone of the Caucasus economies and plays a key role in job
creation. The Fund will invest across a range of industries, with
particular focus on consumer and business services, agribusiness,
distribution, energy and retail, which remain under-served by other
capital providers.
"Fostering entrepreneurship in the countries that strive towards
a market economy is the cornerstone of the EBRD's strategy. The
overwhelming majority of the EBRD's activities support private sector
developement. The EBRD is delighted to join forces with its partner
IFIs and SEAF to support the development of the private equity sector
in the region. This project will bring much-needed resources and
knowledge to support the development of prospective businesses," said
Paul-Henri Forestier, EBRD Director for Caucasus, Moldova and Belarus.
Tomasz Telma, IFC Director for Europe and Central Asia, said:
"Lack of capital is one of the most serious challenges for small and
medium enterprises in the southern Caucasus. Through its investment
in the SEAF Caucasus Growth Fund, IFC is helping address an important
obstacle to these small and medium enterprises, which represent the
backbone of economic diversification and employment."
"Support towards the development of small and medium enterprises in
the Black Sea region is a strategic priority for BSTDB, a regional
development institution. The SEAF Caucasus Fund will facilitate access
to affordable capital for competitive private businesses in Armenia,
Azerbaijan and Georgia and foster good business practices and knowledge
transfer. The project is also a demonstration of the positive synergies
between development partners in promoting sustainable growth and job
creation through private sector development in the region" said Andrey
Butin, BSTDB Director for Financial Institutions.