Accession Mezzanine Capital III

disbursing

The proposed project is a regional mezzanine fund with a target size of EUR 350 million. The Fund aims to invest in mezzanine and equity financing instruments in mid-cap companies in Central European and Balkan countries. The fund will also make selective investments in the Russian Federation, Ukraine and Turkey. Accession Mezzanine Capital III is a follow-on fund to Accession Mezzanine Capital I & II. The transition impact of the proposed project would come from the following areas: (i) flexible implementation of mezzanine finance in restructuring and expansion cases for balance sheet optimisation and capital structure rationalisation; (ii) bridging the funding gap between equity participation and debt provision in acquisition transactions which has widened as a result of the credit tightening, as well as providing additional financing for working capital in already established enterprises; (iii) support of the further expansion east to Russia, Ukraine and Turkey of an established fund manager; (iv) utilisation of additional mezzanine financing and promotion of sophisticated forms of capital among investors in the Region. Accession Mezzanine Capital III, will be established as an English limited partnership. It will be managed by Mezzanine Management Central Europe and will continue the strategy of its predecessor funds, Accession Mezzanine Capital I & II. Commitment to invest up to EUR 50 million. It is expected that the other investors may include a range of institutional investors, banks and other private investors, including European and US institutional investors. The target size of the Fund is EUR 350 million with a maximum of EUR 400 million. The Fund will be required to implement environmental procedures based on EBRD’s Environmental Procedures for Private Equity Funds which include the Bank’s Environmental Exclusion List. Investee companies will be required to comply, at a minimum, with national requirements for environment, health safety and social, local and EU environmental standards. An Annual Environmental Report will be prepared by the Fund and submitted to the Bank for approval. None. Franz Hörhager, Executive Director Mezzanine Management GmbH Kohlmarkt 5/6 A-1010 Vienna, Austria Tel +43 1 532-8990 Fax +43 1 532-8990 20