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Balkan Accesion Fund

Albania, Bulgaria, Moldova, Romania, Türkiye | Financial Institutions

Identification Code:: OP/06/0572
Total Operation Cost:: 110.000.000 EUR
Maturity:: 84 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 EUR – 10 Aug 2006
: BSTDB Signed Amount – Signed Date

10.000.000 EUR – 04 Oct 2006
: Status:
Completed
Description and Purpose of the Operation:: The Balkan Accession Fund is a private equity fund, committed to investing in small and medium-size companies that are most promising to benefit from the economic growth of the second-wave of EU accession countries, primarily in Romania and Bulgaria. The Fund will facilitate investments by providing tailoring transactions that best meet the requirements of companies that are industry leaders having strong management, growth potential in their sectors, and clear domestic and/or regional expansion capabilities. The Fund will seek investments predominantly in financial services, retail, logistics, consumer products, healthcare, information technology, telecommunications, media, and other consumer related services. The Fund reached its first close in January 2005. The Second Close is expected to take place in October 2006 with a target total capital commitment of EUR 100 million.
Countries of Operation:: Albania (2,17%), Bulgaria (19,99%), Moldova (2,17%), Romania (70,57%), Türkiye (5,10%)
Financial Product:: Equity Investments
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Balkan Accession Fund C.V. (BAF), a limited partnership organized under laws of the Netherlands Antilles. BAF is a follow-on fund of the Romanian-American Enterprise Fund ("RAEF") and Bulgarian-American Enterprise Fund ("BAEF").
Co-Financers/Participants:: Other Investors in the BAF are South-Eastern Europe Capital Partners LLP, Deutsche Investitions und Entwicklungsesellschaft mbH (DEG), Nederlande Financierings-Maatschappijvoor Ontwikkelings-Landen N.V., Bulgarian American Enterprise Fund, Romanian American Enterprise Fund, Nathaniel Klipper, Doviere Capital AD, Midhope Ltd., Monitor Resources Ltd., Union Bancaire Privee, SBE Investments Limited, EBRD, and Jonathan Stoddard.
Guarantors/Sponsors:: RAEF/BAEF will commit up to EUR 40 million, which will make them the BAF’s largest shareholders.
Developmental and Regional Cooperation Impact:: By investing EUR 10 million in the Balkan Accession Fund, a non banking financial institution specialized in equity investments in real sector companies BSTDB will provide financial assistance to companies in its member countries thus promoting economic development and regional cooperation. The investment will help attract funding from investors traditional and new to the Black Sea Region.
Environmental Classification and Impact:: The Fund is required to develop environmental procedures satisfactory to BSTDB and integrate it into its overall credit/investment appraisal and monitoring process. Specifically the Fund’s investment operations shall comply with the BSTDB’s Environmental Exclusion List and Negative List of Products, as well as the EH&S regulations and standards in effect in the countries of operations.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org