EBRD and INVEGA join forces for risk capital funds in Lithuania

By Axel  Reiserer


Support for the development of private equity and venture capital markets

Investicijų ir verslo garantijos (INVEGA) and the European Bank for Reconstruction and Development (EBRD) signed a cooperation agreement yesterday that will expand INVEGA’s competencies as a national financial institution responsible for the implementation of risk capital funds in Lithuania.

Supporting the development of the private equity and venture capital sectors in its countries of operations is one of the EBRD’s priorities.

The agreement will help Lithuania implement risk capital instruments to develop its private equity and venture capital markets. These instruments will be implemented using funding from the 2014-20 European Union (EU) Structural and Investment Funds programme. The need for risk capital instruments was included in the ex ante assessment on business financing from the 2014-20 European Union Structural and Investment Funds programme, conducted by the Lithuanian Ministry of Finance in cooperation with other stakeholders.

Audrius Zabotka, Director General of INVEGA, welcomed the cooperation with the EBRD which will enable INVEGA to benefit from the experience of an international financial institution and provide much-needed equity financing for Lithuanian small and medium-sized enterprises (SMEs). “Through the implementation of new risk capital funds we will enhance the supply of investment capital in Lithuania, enabling ambitious companies to grow faster, create more jobs and contribute to the growth of the national economy,” said Mr Zabotka.

Anne Fossemalle, EBRD Director, Equity Funds, added: “We are very pleased to sign this cooperation agreement with INVEGA. It represents a milestone in our efforts to strengthen the private equity and venture capital ecosystem in Lithuania and support the provision of risk capital for Lithuanian SMEs. In INVEGA we have found a trusted and competent partner and we look forward to working together for the benefit of the Lithuanian economy.”

Zsuzsanna Hargitai, EBRD Director, EU Funds Co-Financing, commented: “Our cooperation with INVEGA represents a new model for how institutions such as the EBRD can work with national development financing institutions to effectively implement structural funds programmes. We are delighted with the opportunity to work closely with INVEGA and look forward to our future collaboration.”

The financing programme will be used to implement four risk capital funds via selected financial intermediaries, deploying around €58.8 million of public funding and leveraging additional financial resources. The terms for the implementation of the risk capital funds are to be published shortly for comments by market participants. The instruments will be targeted to facilitate the start-up and business development needs of small and medium-sized enterprises.

 

JSC Investment and Business Guarantees (INVEGA) was established by the Government of the Republic of Lithuania in 2001 and acts as national financial institution promoting funding for business, with its shares controlled by the Ministry of Economy. INVEGA implements and manages a range of financial instruments aimed at enhancing financing available to businesses, using funding available from the European Union Structural and Investment Funds programme, the national budget and funding already used and repaid to national or other funds.

Contact information:

JSC Investment and Business Guarantees (INVEGA)

Asta Slapšienė, Head of Marketing Division

Phone: +370 5 210 7438