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SEAF Caucasus Growth Fund

Armenia, Azerbaijan, Georgia | Financial Institutions

Identification Code:: OP/10/0797
Total Operation Cost:: 46.750.000 USD
Maturity:: 120 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 USD – 02 Dec 2011
: BSTDB Signed Amount – Signed Date

10.000.000 USD – 30 Mar 2012
: Status:
Completed
Description and Purpose of the Operation:: The Operation represents an equity investment up to USD 10 million in SEAF Caucasus Growth Fund (the "Fund"). The Fund will be providing a combination of equity, quasi equity and debt with participation features to SMEs in Armenia, Azerbaijan and Georgia. The Fund’s main objective is to achieve attractive medium and long term returns through financing SMEs with clear growth and regional development opportunities.
Countries of Operation:: Armenia (9,31%), Azerbaijan (0,10%), Georgia (90,69%)
Financial Product:: Equity Investments
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: The SEAF Caucasus Growth Fund L.P. has been established in June 2011. The Fund is the first professionally structured and managed private equity fund in the Caucasus region to provide debt and equity capital to small and medium enterprises in Armenia, Azerbaijan, and Georgia.
Co-Financers/Participants:: IFC, EBRD, FMO, each having committed USD 10 million investment and each being considered Core Member. The General Partner of the Fund will be SEAF Caucasus Partners LTD.
Guarantors/Sponsors:: Small Enterprise Assistance Funds, a not-for-profit corporation.
Developmental and Regional Cooperation Impact:: Support towards the development of small and medium enterprises in the Black Sea region is a strategic priority for BSTDB. 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.
Environmental Classification and Impact:: Screened as FI category. The Fund is required to adopt and implement basic environmental policy and procedures satisfactory to BSTDB and integrate them as fully as possible into its credit/investment appraisal and monitoring process.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org