Meinl Caucasus and Central Asia

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The proposed project envisages the establishment of a joint-venture, Meinl Caucasus and Central Asia (“MCCA”) between Meinl European Land Limited (“Meinl” or “the Sponsor”) and the EBRD. The joint-venture will finance the development of high-quality, international standard retail and mixed-use properties in Caucasus and Central Asia with a particular focus on the major cities of Georgia, Armenia, and Kazakhstan. The properties will be developed and managed by Acteeum Limited, an internationally experienced development and management company, with the objective of achieving long-term capital gains. The transition impact stems from the following factors: The Project helps to stimulate competition and fosters market expansion in the targeted markets. MCCA helps to address the significant undersupply of modern retail facilities in the targeted countries which hitherto is characterised by a de facto non existent international quality retail sector. It will enable international retailers to enter the market and rent adequate retail premises. The Project has a significant demonstration effect raising the awareness in the international investor community about the Region. EBRD’s involvement highlights the potential of these markets. The Project enhances transfer of skills and backward linkages. On a case-by-case basis the Joint-Venture will work together with local partners, sub-contractors and service providers. All of them will benefit and learn from the expertise brought along by the joint-venture. It is expected that the Project will have substantial spill-over effects for the local construction and property development sectors. Meinl European Land Limited: A property company focused on the development and management of retail properties in Central and Eastern Europe. Meinl is listed on the Vienna Stock Exchange and has a market capitalization of EUR 6.4 billion. Acteeum Limited: A property development and management company focused on the Eastern European and emerging markets. Acteeum develops and manages properties for Meinl in Ukraine and Turkey. The proposed EBRD financing comprises the provision of the lower of 35% and EUR 52.5 million equity for the Joint-Venture. The remaining 65% will be contributed by Meinl. In addition, EBRD will provide the lower of 35% and EUR 78.8 million of preferred stand-by equity with Meinl providing 65%. The preferred stand-by equity can be called if no commercial debt financing can be reasonably secured for the sub-project. EUR 375 million. Screened FI. The Fund will be required to implement the Bank's Environmental Procedures for Property Fund including adequate environmental due diligence and monitoring for each sub-project and submission of Annual Environmental Reports to the Bank. None. Meinl Mr. Wolfgang Lunardon Email: lunardon@mel-cee.com Tel: +44 7797 768 857 Acteeum Mr. Henrik Stig Møller Email: hsm@acteeum.com Tel: +31 61 06 95 771