Project number:


Business sector:

Manufacturing and Services

Notice type:


Environmental category:


Approval date:

24 Feb 1998



PSD disclosed:

13 Jan 1998

Project Description

The Direct Investment Facility (DIF) was originally approved by the EBRD Board in October 1997 with funding of USD30 million, and then in November 2001 its funding was increased to USD60 million, and finally to €30 million in June 2007, bringing the total amount of funding to approx. €74.4 million.

The DIF (managed by the ETC Private Equity Unit) is a mechanism through which the EBRD invests in a portfolio of equity-driven investments in primarily small and medium-sized private sector enterprises in the countries where equity capital is not yet readily available. Currently, the designated eligible countries are Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan, Uzbekistan as a priority region plus Belarus, Bosnia & Herzegovina, FYR Maccedonia, the Russian Far East and Kaliningrad, and Turkmenistan. 

The objective of the DIF is to act as a catalyst for equity investment by demonstrating to both local and foreign investors the value of direct investment in small entrepreneurial business opportunities in difficult markets. Projects are selected for their commercial viability, their prospective returns, the strength and experience of management, the likelihood of an appropriate exit strategy, etc.

Transition Impact

The primary objective of DIF continues to be achieving transition impact by focusing on the promotion of the private sector in the countries of operation, and in particular, but not exclusively, on local entrepreneurial activity.  Transition impact is achieved through requiring and promoting sound commercial planning, strong management capability, introduction of proper accounting standards, introduction of and adherence to good corporate governance principles.

The Client

Private medium sized companies in designated eligible countries.

EBRD Finance

The total financing provided by the Bank is currently €74.4 million. The project is supported by technical cooperation funding.

Project Cost

EUR 74.4 million

Environmental Impact

Individual projects will be screened on a case-by-case basis and environmental due diligence conducted accordingly. Individual projects will be required to comply, at a minimum, with national health, safety and environmental regulations and standards.

Technical Cooperation

Historically, TC funding has been bilateral, primarily from EC, Swiss, Greek, Canadian, Italian, Dutch Taiwanese, UK and US Cooperation Funds. Since November 2004, DIF has had access to untied funds from the ETC Multi-Donor Fund. To date, the total allocation is €2.3 million.

Company Contact


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

EBRD project enquiries not related to procurement:
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

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