Equity for large projects

The EBRD invests equity ranging from €2 million - €100 million in industry, infrastructure, and the financial sector. It uses innovative approaches and instruments, and it expects an appropriate return on its investment. The Bank will only take minority positions and will have a clear exit strategy.

Equity and quasi-equity instruments

• Ordinary shares.
• Preference shares.
• Subordinated loans.
• Debentures.
• Income notes.
• Redeemable preference shares.
• Listed and unlisted.
• Underwriting of share issues by public or privately-owned enterprises.
• Financing the transfer of shares in existing enterprises. This form is only used in cases of privatisation where such a transfer will definitely improve efficiency, for example, through better management, rehabilitation or expansion under new ownership or synergy with the acquirer's operations.
• Other forms can be discussed with EBRD banking staff.

The EBRD also participates in investment funds, which in turn invest in medium-sized companies that need to expand their business. Equity funds are focused on a specific region, country or industry sector, have local presences and are run by professional venture capitalists. Their main investment criteria are consistent with the EBRD's overall investment policy.

Terms and conditions

The terms and conditions of EBRD investment depend on risks and prospective returns associated with each project. They are also affected by the financial/ownership structure of the project company.

As the Bank has limited capital resources, it does not take long-term equity investments or controlling interests. Nor does it assume direct responsibility for managing the project company.

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