We invest equity ranging from €2 million to €100 million in private sector projects.
The EBRD expects a market rate return from its equity investments. EBRD would only invest in minority equity positions.
Equity and quasi-equity instruments
- Ordinary shares.
- Preference shares.
- Subordinated loans.
- Redeemable preference shares.
- Listed and unlisted.
- Underwriting of share issues by public or privately-owned enterprises.
- Other forms can be discussed with EBRD banking staff.
The EBRD also participates in private equityfunds, which in turn invest in medium-sized companies that need to expand their business. Equity funds are focused on a specific region, country or industry sector, have local presences and are run by professional venture capitalists. Their main investment criteria are consistent with the EBRD's overall investment policy.
Terms and conditions
The terms and conditions of EBRD investment depend on risks and prospective returns associated with each project. They are also affected by the financial/ownership structure of the project company.
As the Bank has limited capital resources, it does not take long-term equity investments or controlling interests. Nor does it assume direct responsibility for managing the project company.
Equity funds for smaller enterprises
To give entrepreneurs and small firms greater access to finance, the EBRD also supports financial intermediaries, such as local commercial banks, micro business banks, equity funds and leasing facilities.
Equity finance is available from EBRD-supported private equity funds, donor-supported equity funds and directly from the EBRD. Equity funds support all kinds of investments including business start-ups, expansion and acquisitions.
Some funds specialise in financing companies in need of restructuring, in distressed situations or mezzanine capital for a later stage. Fund investments generally have a higher prospective return and require longer-term risk capital than standard EBRD projects.
Investment criteria are consistent with EBRD policy, but investment decisions are made by fund managers.
Equity Participation Fund
The EBRD’s Equity Participation Fund (EPF) mobilises funds from global institutional investors to take part in our own direct equity investments with the goal of attracting long-term institutional capital into the private sector in the countries where we work.