Telecoms showcase - smaller companies

Benchmark transactions - investing in smaller companies

The Bank has established a number of equity funds to make investments in smaller information technology and new economy companies. Investments typically range from a few hundred thousand Euro up to €5M.

Benchmark transactions include GlobalNET in Croatia and Hermes Softlab in Slovenia.

GlobalNET, Croatia

The EBRD co-invested US$ 1.6 million with Croatia Capital Partners (CCP) in the second round of funding for GlobalNET - the third largest internet service provider in Croatia. The investment objective is to finance GlobalNET's expansion into business internet access and value-added services before the telecommunications market is deregulated in 2003. The aim is to create a viable alternative for internet access and a potential platform for other value added services and telephony to the incumbent operator. This should further advance Croatian internet penetration (much lower than other comparable countries) and provide a boost to small and medium enterprises' usage of advanced technology.

Hermes Softlab, Slovenia

HERMES SoftLab completed a private equity placement of €10 million to a select number of high quality international and domestic institutional investors including the EBRD, Hewlett-Packard, Charlemagne Capital and Nova Ljubljanska banka.

The Bank provided €3 million of equity financing, which will be used to retire existing debt and leverage the company's core technologies, build its commercial and marketing activities and pursue growth opportunities in complementary businesses. The company, based in Slovenia, is one of the leading central and eastern European software developers and is offering software engineering and development services to large western European and American companies. Hermes Softlab also develops software products for end users, including storage resource management, network systems management, CAD development and application management software. In the banking/ finance and telecommunications areas, the company has developed e-finance products and mobile telecommunications software products.