GED Eastern Fund II

repaying

The proposed project is a private equity fund with a target size of EUR 100 million that will invest in small and medium-sized enterprises primarily in Romania and Bulgaria. Sectors targeted include retail, distribution, healthcare, logistics and media. The fund will make investments in growing cash generating middle market companies with well established market positions or with a defendable niche and with strong management. The Fund is a successor fund to the Romanian Post Privatization Fund (“RPPF”), established by EBRD in 1996 with the EU Technical Cooperation. Transition impact will be the result of sound investments in growing privately owned companies in the targeted countries. The fund manager is expected to adopt a hands-on approach by taking board positions in portfolio companies and transferring technical expertise and know-how. Through the significant involvement of its local teams, the fund is expected to contribute towards the transfer of investment skills to local managers. The competitiveness of the portfolio companies will increase, thus developing the local markets and attracting strategic investors. GED Eastern Fund II is a venture capital fund of a closed type, incorporated in Spain and regulated by the Spanish Stock Exchange Regulator. GED Capital Development SA, SGECR, a Spanish private entity, is the management company and will manage the Fund. The GED team has worked together for several years through the management of the RPPF. The Fund had the first closing in April 2005 at EUR 48 million. The EBRD commits to invest up to EUR 20 million in equity in GED Eastern Fund II In the subsequent closing(s). The Fund’s target size is EUR 100 million. Up to EUR 20 million. GED Eastern Fund II will be required to implement the EBRD's Environmental Procedures for Private Equity Funds, which includes compliance with the Bank's Environmental Exclusion and Referral List and a requirement to ensure investee companies compliance with national environment, health and labour standards. The Fund will submit an Annual Environmental Report to the Bank. None. Mr Enrique Centelles Echeverría, President GED Capital Development SA Marques del Riscal 12 .4 Izda 28010 Madrid Spain Tel: +34 (917) 020 250 Fax: +34 (917) 021 764 Email: ecentelles@gediberian.com