NORTH-EASTERN UKRAINE POST PRIVATISATION FUND

cancelled

The Eastern Ukraine Post Privatisation Fund is an ECU 24 million private equity fund with a 10-year life. The Fund will invest primarily in medium-sized private and privatised enterprises in the eastern part of Ukraine (regions of Dnipropetrovsk, Zaporizhia, Donetsk and Luhansk). The Fund will be supported with technical cooperation funding. The principal objective is to provide new equity capital, corporate governance and technical assistance to private and privatised enterprises in the eastern part of Ukraine. The direct equity investments and the technical assistance funding will enable the establishment, modernisation or expansion of investee companies. The Fund will be managed by a Dutch venture capital company in partnership with individuals of Ukrainian origin. It will invest primarily in medium-sized private and privatised enterprises in the eastern part of Ukraine (regions of Dnipropetrovsk, Zaporizhia, Donetsk and Luhansk). The investee companies will have good growth prospects and the potential for providing high returns commensurate with the high risks involved. The EBRD will provide all of the Fund's equity capital of ECU 24 million. The Fund Manager and FMO, the Dutch Development Finance Company, will co-invest alongside the Fund with a total amount of about ECU 2.25 million. The total project cost (including the Fund's capital, its operating expenses and other advisory services covered by technical cooperation funding) amounts to about ECU 40 million. The Fund will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements. Technical cooperation funding will be provided to: (i) meet the operating costs of the Fund; (ii) pay for accounting, legal, environmental and other due diligence in respect of potential investments; and (iii) provide consulting support to enterprises for project preparation and implementation.