TBIH Financial Services Group N.V.

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The proposed EBRD financing involves equity and debt financing to support the expansion of TBI Holding’s (TBIH) activities in the insurance and pension sectors in central and eastern Europe (CEE). The project will have substantial transition impact by promoting the development of capital markets in the region, increasing the intermediation capacity of the financial sector and contributing to the implementation of a comprehensive pension reform. TBIH, a Dutch company, was created by the Kardan Group of Israel and the private equity arm of Deutsche Bank, to invest in and establish a strategic presence in the non-banking financial sector (mainly insurance, pensions and asset management) in CEE. An equity investment comprising of a new investment of US$ 9.5 million (€11.0 million) and an exchange of the EBRD’s shares in Bulgarian Insurance and Pension, TBIH’s Bulgarian holding company, to which the EBRD previously provided equity financing (Board Review date: 14 December 1999). Shareholder’s loan of US$ 3.1 million (€3.5 million) and a senior convertible loan of US$ 8.9 million (€10.3 million). US$ 74 million (€85 million). TBIH will manage its investments in accordance with the EBRD’s environmental guidelines for investments in the insurance sector. It will also provide guidance in identifying any significant environment-related exposures in the portfolio of potential investee companies. None.