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CAUCASUS GROWTH FUND RAISES $42 MLN TO BOOST PRIVATE INVESTMENT
/ARKA/
APRIL 27, 2012
YEREVAN
YEREVAN, April 27. /ARKA/. The European Bank for Reconstruction and
Development (EBRD) said SEAF Caucasus Growth Fund raised $42 million
to boost private investment in Caucasus.
"International financial institutions are teaming up to support
local businesses with private equity financing in the Caucasus,"
ARKA quotes the source.
The EBRD, International Finance Corporation, a member of the World
Bank Group (IFC), the Netherlands development bank (FMO) and Black
Sea Trade and Development Bank (BSTDB) will invest in the Caucasus
Growth Fund. This new fund is backed and managed by Small Enterprise
Assistance Funds (SEAF), a global fund manager.
International financial institutions are initially providing
$40 million and Small Enterprise Assistance Funds will contribute
additional $2 million to the SEAF Caucasus Growth Fund, with a target
size of $70 million. It will be the first institutional-quality fund
dedicated to providing debt and equity capital to small and medium
enterprises in Caucasus.
Through their collaboration, the international financial institutions
are supporting private equity investments in the small and medium
enterprises segment, which is a 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
underserved by other capital providers.
Head of EBRD Yerevan Office Valeriu Razlog said 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 development. 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," he added.
This project will bring much-needed resources and knowledge to support
the development of prospective businesses, he clarified.
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."
On his side, Andrey Butin, BSTDB Director for Financial Institutions
said support towards the development of small and medium enterprises
in the Black Sea region is a strategic priority for BSTDB, a regional
development institution.
He added that 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" he said.
SEAF is a global fund manager with an extensive track record of
developing local fund management capacity and providing growth and
expansion capital to small and medium enterprises in emerging markets
in Eastern Europe, Latin Amreica and Asia.
/ARKA/
APRIL 27, 2012
YEREVAN
YEREVAN, April 27. /ARKA/. The European Bank for Reconstruction and
Development (EBRD) said SEAF Caucasus Growth Fund raised $42 million
to boost private investment in Caucasus.
"International financial institutions are teaming up to support
local businesses with private equity financing in the Caucasus,"
ARKA quotes the source.
The EBRD, International Finance Corporation, a member of the World
Bank Group (IFC), the Netherlands development bank (FMO) and Black
Sea Trade and Development Bank (BSTDB) will invest in the Caucasus
Growth Fund. This new fund is backed and managed by Small Enterprise
Assistance Funds (SEAF), a global fund manager.
International financial institutions are initially providing
$40 million and Small Enterprise Assistance Funds will contribute
additional $2 million to the SEAF Caucasus Growth Fund, with a target
size of $70 million. It will be the first institutional-quality fund
dedicated to providing debt and equity capital to small and medium
enterprises in Caucasus.
Through their collaboration, the international financial institutions
are supporting private equity investments in the small and medium
enterprises segment, which is a 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
underserved by other capital providers.
Head of EBRD Yerevan Office Valeriu Razlog said 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 development. 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," he added.
This project will bring much-needed resources and knowledge to support
the development of prospective businesses, he clarified.
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."
On his side, Andrey Butin, BSTDB Director for Financial Institutions
said support towards the development of small and medium enterprises
in the Black Sea region is a strategic priority for BSTDB, a regional
development institution.
He added that 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" he said.
SEAF is a global fund manager with an extensive track record of
developing local fund management capacity and providing growth and
expansion capital to small and medium enterprises in emerging markets
in Eastern Europe, Latin Amreica and Asia.