The EBRD aims to invest in venture equity-backed growth-stage technology companies via a venture debt instrument with an investment size of up to €10 million in the Bank's countries of operations through its Venture Capital Investment Programme - Venture Debt (VCIP-VD, which will be a new instrument of EBRD's existing programme, VCIP, and is a dedicated framework facility of €120 million). Investments will target innovative and high growth small and medium-sized enterprises with proven business models and demonstrated revenue traction.
The introduction of venture debt extends the EBRD's venture product offering beyond equity and will contribute to addressing the market gap in growth-stage venture financing in the EBRD regions.
VCIP-VD objectives are to i) support the scaling-up of innovative technology-based businesses and ii) develop the venture debt market in the regions where access to growth-stage venture equity capital financing is limited and venture debt is largely unavailable.
VCIP-VD will be an additional instrument of the broader VCIP effort, which i) enables the Bank to foster knowledge economies in the regions, develop technology ecosystems and support innovation; ii) the Bank, through VCIP, plays an important role in bridging the venture capital funding gap that exists in the regions; iii) VCIP allows the Bank to maintain a portfolio approach to higher risk/higher return investment opportunities.
ETI score: 80
The VCIP-VD framework is expected to contribute to the Competitive and Resilient transition qualities as it will support the growth of highly innovative technology-based companies, as well as promote better access to venture debt which is nearly non-existent in the EBRD regions. The VCIP-VD will build on the success of the VCIP I & VCIP II facilities and provide key support for the development of the knowledge economy in the EBRD regions, in line with the EBRD's Knowledge Economy Initiative.
On a case by case basis.
EBRD Finance Summary
Total Project Cost
Through VCIP-VD, the EBRD will offer an innovative financing instrument, venture debt, on commercial terms, not available from other banks or venture debt funds dedicated to the EBRD regions.
Environmental and Social Summary
The Framework itself is not categorised under the Bank's Environmental and Social Policy (2019), however, each sub-project will be categorised on a case by case basis and will be subject to individual environmental and social due diligence (ESDD) and GET examination specific to the project and the client. Based on the sub-project's category, appropriate ESDD will verify that each sub-project is structured to comply with the Bank's PRs.
Technical Cooperation and Grant Financing
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PSD last updated
05 Feb 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.