BARING COMMUNICATIONS

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A private equity investment fund targeting the media and communications sector in the countries of central and eastern Europe and the former Soviet Union. The Fund's primary objective is long-term capital appreciation through equity and equity-related investments in a diversified portfolio of primarily unlisted companies that are well positioned to take advantage of the high growth potential of the media and communications industry within the EBRD's countries of operations. Through its equity investment, the Fund will facilitate the consolidation of small and medium-sized operators and service providers in the media and communications sector in order to increase operating efficiency. This will develop the overall media and communications sector in the region. Baring Communications Equity (Emerging Europe) Limited (the Fund), is an investment fund set up to make direct equity investments in media and communications companies in the EBRD's countries of operations. Baring Private Equity Partners Limited (BPEP), an investment management arm of ING Group, and Communications Equity Associates, Inc. (CEA), a US financial advisory firm, will sponsor the Fund. An equity investment of the lower of US$ 12.5 million (EUR 11.5 million) which represents 18 per cent of the Fund's final closing amount. Other institutional investors invested the balance. The Fund raised US$ 69.75 million (EUR 64.0 million) at the second closing. The Fund will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements. None