Financed ProjectsTrans-Balkan SME Equity Fund

Identification Code:

OP/00/0125

Total Operation Cost:

21.825.000

Maturity:

138 months

Operation Status:

Description and Purpose of the Operation:

Through investments in Trans-Balkan Equity Fund, much needed funds will be ultimately channeled to small scale private sector SME in need of equity financing. The fund’s objective is to provide equity and quasi-equity financing, in combination with active business assistance and trade linkages, to small and medium sized enterprises in Albania, Bulgaria, Romania, and other neighboring Balkan states, at this stage, Croatia, Bosnia- Herzegovina and FYROM.

Countries of Operation:

Albania (33,33 %)
Bulgaria (33,33 %)
Romania (33,33 %)

Financial Product:

Equity Investments

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Trans-Balkan Equity Fund is a limited liability company established by the Small Enterprise Assistance Fund, in conjunction with its Dutch sister organization Stichting-SEAF. The Fund is intended to address, in an immediate and practical way, the "real economies" of the targeted countries by assisting the much "smaller" SME sector, which has been avoided in general by the traditional funds.

Co-Financiers/Participants:

Guarantors/Sponsors:

IFC, Norfund, SEAF, SECO, FINNFUND

Developmental and Regional Cooperation Impact:

This operation is the Bank’s first project targeting simultaneously several BSTDB countries with equity investments for the smaller size SME, a priority area in BSTDB’s strategy papers. The project will stimulate, albeit indirectly, cross-country activities of private sector companies in the Black Sea region. This will be achieved by the increased trade among companies financed by the Fund. The Bank’s participation will allow addressing the equity financing needs of smaller SME, to achieve economies of scale by spinning three BSTDB countries in a single transaction.

Environmental Classification and Impact (summary):

The project is in compliance with the environmental requirements of BSTDB, IFC or other acceptable IFI’s environmental requirements.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org