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Trans-Balkan SME Equity Fund

Albania, Bulgaria, Romania | Financial Institutions

Identification Code:: OP/00/0125
Total Operation Cost:: 21.825.000 USD
Maturity:: 138 months
Operation Status:: BSTDB Approved Amount – Approval Date

4.000.000 USD – 16 Jun 2000
: BSTDB Signed Amount – Signed Date

4.000.000 USD – 20 Jul 2000
: Status:
Completed
Description and Purpose of the Operation:: Through investments in Trans-Balkan Equity Fund, much needed funds will be ultimately channeled to small scale private sector SME in need of equity financing. The fund’s objective is to provide equity and quasi-equity financing, in combination with active business assistance and trade linkages, to small and medium sized enterprises in Albania, Bulgaria, Romania, and other neighboring Balkan states, at this stage, Croatia, Bosnia- Herzegovina and FYROM.
Countries of Operation:: Albania (33,33%), Bulgaria (33,33%), Romania (33,33%)
Financial Product:: Equity Investments
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Trans-Balkan Equity Fund is a limited liability company established by the Small Enterprise Assistance Fund, in conjunction with its Dutch sister organization Stichting-SEAF. The Fund is intended to address, in an immediate and practical way, the "real economies" of the targeted countries by assisting the much "smaller" SME sector, which has been avoided in general by the traditional funds.
Co-Financers/Participants:: —
Guarantors/Sponsors:: IFC, Norfund, SEAF, SECO, FINNFUND
Developmental and Regional Cooperation Impact:: This operation is the Bank’s first project targeting simultaneously several BSTDB countries with equity investments for the smaller size SME, a priority area in BSTDB’s strategy papers. The project will stimulate, albeit indirectly, cross-country activities of private sector companies in the Black Sea region. This will be achieved by the increased trade among companies financed by the Fund. The Bank’s participation will allow addressing the equity financing needs of smaller SME, to achieve economies of scale by spinning three BSTDB countries in a single transaction.
Environmental Classification and Impact:: The project is in compliance with the environmental requirements of BSTDB, IFC or other acceptable IFI’s environmental requirements.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org