Horizonte Bosnia and Herzegovina Enterprise Fund

completed

Summary Of Project Information (SPI)Project NameBosnia and Herzegovina-Horizonte Bosnia and Herzegovina Enterprise FundRegionEuropeSectorProject No007622Projected Board DateSeptember 17, 1996Company NameHorizonte Bosnia and Herzegovina Enterprise FundTechnical Partner and/or Major Shareholders The Fund will be managed by Horizonte Venture Management, Vienna, Austria. Besides IFC, investors in the Fund include B-H Banka, a private BH bank, the Austrian Kärtner Landes- und Hypothekenbank, EBRD and USAID. Austrian, Turkish and Middle-Eastern investors are also being approached as potential investors in the Fund.Project Cost Including proposed IFC investment Project Cost: US$17 - 20 million. IFC Investment: US$2 million equity.Location of Project and Description of site Sarajevo, Bosnia and HerzegovinaDescription of Company and Purpose of Project IFC will invest in a venture capital fund which will provide badly needed equity capital for private sector projects, or for companies in the process of privatizing, with a special emphasis on small businesses. The Fund would also assist small and medium sized enterprises with the marketing, finance and technical assistance they need. The Fund--which will have a ten year life--is expected to be capitalized at US$20 million, though a closing for a smaller amount could be envisaged. The project--IFC’s first in BH--consists of an equity investment of up to US$2.0 million in the Horizonte Bosnia and Herzegovina Enterprise Fund. The Fund is the first vehicle of its kind dedicated to investment in BH and will serve as an important source of equity capital for BH’s emerging private sector.Environmental Category and Issues IFC’s Environmental Division has classified the project as a Category FI according to IFC’s environmental review procedure. The Fund will be required to undertake an environmental review of eligible investee companies’ operations.Date SPI send to PIC: August 19, 1996For additional information contact: Corporate Relations Unit - telephone: (202) 473-7711facsimile: (202) 676-0365