Emerging Europe Accession Fund

signed

The proposed project is a private equity fund, follow on to Balkan Accession Fund (BAF), dedicated to investing in mid-size private companies in Romania, Bulgaria, Turkey, Moldova and Ukraine. The Fund will seek to make equity investments and will also utilise mezzanine instruments with a view to best meet the requirements of mid-size businesses seeking growth. The proposed investment in Emerging Europe Accession Fund: a) will be an important source of risk capital and mezzanine finance at a time where small and medium sized companies are suffering more than ever from lack of appropriate financial instruments; b) will solicit in transfer of skills to portfolio companies, advice on improving company financial performance, as well as the implementation of international financial practices and corporate governance standards; c) will set standards for business conduct. Experienced private equity managers can be instrumental for providing disciplined risk capital to fast growing private enterprises and introducing sophisticated financial tools and bringing on high corporate governance standards. The Fund will be managed by Axxess Capital 3 N.V. a limited liability Company to be registered under the laws of the Netherlands Antilles, which will be owned by the management team. The management team is well known to the Bank through EBRD investment in the Balkan Accession Fund, which is a predecessor fund and was established in 2006. The Bank will commit to invest up to a maximum of EUR 40 million. It is expected that the investors may include a range of institutional investors including the International Financial Institutions that have backed BAF, banks and other private investors. EUR 200 million. The Fund shall comply with the EBRD's Performance Requirement 2 (Labour and Working Conditions) and Performance Requirement 9 (Financial Intermediaries. Investee companies will be required to comply, with national and EU environmental and OHS standards and national labour laws and the ILO's core labour standards, An Annual Environmental and Social Report will be prepared by the Fund and submitted to the Bank for approval. None. Romania Horia Manda Managing Partner Emerging Europe Accession Fund Tel: +40 21 2077100 E-mail: horia.manda@bafund.net