HORIZONTE BOSNIA & HERZEGOVINA ENTERPRISE FUND

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An equity investment of US$ 5 million in a private equity fund for a term of 10 years. The Fund will seek to maximise capital growth by making direct equity investments in a portfolio of private companies in Bosnia and Herzegovina. To achieve its operational objective, the Fund will monitor the development of its portfolio companies, through various growth stages, by adding value in financial management, sales, marketing and organisational development. The operation's main transition impact will be achieved by helping to address existing deficiencies in the supply of long-term financing in Bosnia and Herzegovina. Promotion of equity financing to eligible local companies and joint ventures shall play an important role in achieving dissemination of market economy practices in the country. Horizonte Bosnia and Herzegovina Enterprise Fund is a private equity fund to be established in the Netherlands as a 10-year limited liability company. Equity investment of US$ 5 million. To date, the Fund has secured capital commitments of US$ 18.4 million, 85 per cent of which comes from private institutional investors. The initial closing occured in August 1998. The Fund will carry out its operations in accordance with the EBRD's Environmental Procedures for Private Equity Funds, which provide for the integration of environmental due diligence into every transaction and ensure that investee companies comply, at a minimum, with national and local health, safety and environmental regulations and standards. The Fund Manager will submit annual environmental reports to the EBRD. None