INFO. AND COMM. TECH & INDUSTRIAL ELECTRONIC FUND LTD.

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4442

Status Complete

Location

Regional

Business Sector

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 4442

Status Complete

Location

Regional

Business Sector

Notice Type

Private

Environmental Category

Approval Date

26 Jan 1999

Disclosure date

04 Dec 1998

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The Technologieholding Central and Eastern Fund is a ten-year term fund from the initial closing, with an option for two one-year extensions. This fund will invest in small to medium-sized companies in the Information and Communication Technology and Industrial Electronic sector, primarily in central and eastern Europe, with the main emphasis on the Czech Republic, Hungary and Poland.

The Fund aims to achieve long-term capital appreciation from direct investment in small to medium-sized companies in the information and communications technology and industrial electronic sector, primarily in the Czech Republic, Hungary and Poland and, to a lesser extent, in other countries of operations.

Transition Impact

The Fund will demonstrate investment opportunities in the innovative high-technological companies of Poland, Hungary and the Czech Republic. It will be the first private equity fund to focus on investments in information and communication and industrial electronic companies in the area. Other private equity funds currently operating in the region do not have the expertise to appraise the potential of this segment of the market. The success of this fund will draw the attention of other specialist technological equity firms, which have conventionally focused on firms in the West, to Central Europe – a region rich in human resources with IT technology and skills.

The Fund will also provide appropriate financing to entrepreneurs in the IT sector without tangible assets for a loan collateral. It is reasonable to expect that the success of this fund will lead to the establishment of other private equity funds focused on sectors with a high human capital component and will expand the financing opportunities in the region. Secondly, the Fund's investments in the IT sector will promote market interactions in other sectors as the expansion of IT-related service companies financed by the Fund can be expected to reduce business transaction costs in various sectors of the economy.

The Client

The Fund will be managed by a joint venture owned equally by the Fund's sponsors, TechnologieHolding VC GmbH (Germany) and Sitra Oy (Finland).

EBRD Finance

The EBRD will subscribe up to US$ 17 million (ECU 14.2 million).

Project Cost

The project size is US$ 50 million at first closing. The maximum size will be US$ 80 million (second closing).

Environmental Impact

The Fund has agreed to comply with the EBRD’s Environmental Procedures for Private Equity Funds, which include the Bank’s Environmental Exclusion List. Investments will be structured to meet applicable national and EU environmental requirements. It should be noted, however, that there are no specific national, EU or World Bank environmental requirements for most of the Fund’s targeted industry sectors, given their low environmental impact potential.

The Fund Manager will report annually to the Bank on the implementation of the environmental procedures and the environmental performance of its investee companies. As the Fund’s portfolio can be classified as environmentally low risk, the overall environmental impact of this operation is expected to be largely neutral.

Technical Cooperation

None

Company Contact

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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