Project description
and objectives:
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The Albania Reconstruction Equity Fund (AREF) is an equity fund established to support small and medium-sized enterprises (SMEs) in Albania.
The Fund aims to achieve long-term capital appreciation by contributing to the modernisation, expansion, restructuring and development of SMEs and private enterprises in Albania.
The Fund seeks to achieve its objective by taking a significant minority stake in the portfolio company through negotiated transactions while taking an active role in influencing its operations and management.
The first investment for US$ 170,000 was signed in February 1999 and is being disbursed.
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Transition impact:
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The Fund will be the first non-banking financial institution in Albania to provide medium to long-term financing to Albanian enterprises and foreign investors willing to make investments in the country. The Fund will, therefore, play a critical role in speeding up the on-going privatisation of the Albanian economy and attracting foreign direct investment.
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The client:
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The AREF will be established as an unincorporated investment vehicle with a total capital of US$ 14 million (ECU 12.7 million). The Italian Government will contribute equity capital of US$ 7 million (ECU 6.35 million). The Fund Manager is a consortium of companies led by Economisti Associati, and its participants include SEAF and Banca Popolare di Bari.
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EBRD finance:
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The EBRD will contribute equity capital of US$ 7 million (ECU 6.3 million).
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Total project cost:
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The total project cost is US$ 17 million (ECU 15.3 million).
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Environmental impact:
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The Fund will follow the EBRD's Environmental Procedures for Investment Funds.
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Technical
cooperation:
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A US$ 3 million TC Fund will be provided by the Italian Government and used to finance the Fund’s operating expenses and other costs, including the Fund’s management fees.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Ervin Luga, Operation Leader: lugae@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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