|
EBRD steps up its commitment to insurance and pensions sector in central and eastern Europe
As part of its strategy to support the development of capital markets in central and eastern Europe, the European Bank for Reconstruction and Development (EBRD) is providing a substantial financing package to TBI Holdings (TBIH), a Dutch company focusing on insurance, pensions and other non-bank financial activities in the EBRD’s countries of operations. The financing will help TBIH develop its existing subsidiaries and pursue further acquisitions, and thus address the increasing demand for insurance and pensions services in the region.
The EBRD will take a 23.5 per cent stake in TBIH through a cash investment of US$ 9.5 million
(€11 million) and an exchange of the Bank’s 30 per cent stake in Bulgarian Insurance and Pension. In addition, the EBRD will provide US$ 12 million (€13.8 million) in debt financing. The other shareholders in TBIH – Kardan Ltd of Israel (46 per cent) and the private equity arm of Deutsche Bank (30.5 per cent) – will provide additional funding of US$ 17.5 million (€19.9 million).
"The investment in TBIH fits well into our strategy of supporting companies dedicated to the non-bank financial sector and having an active hands-on management approach," said Jonathan Woollett, the EBRD’s Director for Non-Bank Financial Institutions. "Through TBIH the Bank will be able to reach insurance and pension companies that are not suitable for direct investment because of their small size and need for direct management support. The project will directly promote the capital markets development in a number of countries, increasing the intermediation capacity of the financial sector and contributing to the implementation of pension reforms."
"TBIH welcomes the cooperation between the EBRD and the Group, which will enable it to achieve significant growth in the short to medium-term, both in the existing holdings and in expanding its activities to new central and eastern European countries," said Yosef Grunfeld, Chairman of the Kardan Group.
TBIH, incorporated in the Netherlands, was established in 1998 to invest and establish a strategic presence in the non-banking financial sector (mainly insurance, pension and asset management) in central and eastern Europe. TBIH’s investment approach is to take majority positions in its investee companies and provide strong hands-on post-investment management support. TBIH currently has investments in Bulstrad Insurance (66.4 per cent) and Doverie Pension Fund Management (85 per cent) in Bulgaria, Helios Insurance (88 per cent) in Croatia, Omniasig Insurance (52 per cent) in Romania, and the pension fund manager Tatry (90 per cent) in the Slovak Republic.
|
