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EBRD supports investment fund for Romania and Moldova
The Danube Fund Limited, a new investment fund focusing on small and medium-sized enterprises in Romania and Moldova, has received the support of the European Bank for Reconstruction and Development (EBRD) which is taking an equity stake of up to 20 per cent of the Fund's total capital. The Danube Fund, sponsored by Alpha Bank Group, the largest private banking group in Greece, is expected to attract between US$ 20 million and US$ 30 million from private investors and has completed its initial closing with US$ 15.6 million.
This is the first private sector fund which includes Moldova in its main target countries. "By participating in the Danube Fund, the EBRD can increase investor confidence and attract additional private equity investment into Romania and Moldova", said David Hexter, Deputy Vice President of the EBRD.
The Fund will contribute to the development of the region's private sector and economic growth by selecting those enterprises with strong prospects, providing much-needed equity capital as well as business and technical know-how.
A large part of the Fund's deal flow is expected to come from Greek industrialists, who are ready with investment projects in the region. It is also expected that Greek strategic investors, introduced by Alpha Bank Group, will co-invest with the Fund.
It is anticipated that the average size of the Fund's investment will range from US$ 1 million to US$ 2 million. At least two-thirds of the capital committed to the Fund will be invested in Romania and Moldova, while the rest may be invested in Albania, Bulgaria and the Former Yugoslav Republic of Macedonia.
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