BPM Mezzanine Fund II

Location:

Regional

Project number:

52446

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval date:

23 Jun 2021

Status:

Approved

PSD disclosed:

14 May 2021

Project Description

An equity commitment of up to EUR 15 million in favour of BPM Mezzanine Fund II L.P.  (the "fund").

Project Objectives

Thr fund seeks to make mezzanine and quasi-equity investments into companies predominantly in the small and medium-sized enterprise (SME) segment in Estonia, Latvia, Lithuania and Poland (the "target region")

Transition Impact

ETI score: 64

The Bank's proposed investment will provide long-term mezzanine financing to SMEs and small mid-cap companies and support a follow-on fund of an experienced fund manager in the target Rregion. The project supports the mezzanine segment of the private equity market and contributes to the development of capital markets in the target region.

Client Information

BPM MEZZANINE FUND II

The fund will be managed by BPM Mezzanine Fund II Management OU and advised by BPM Capital 2 OU.

EBRD Finance Summary

EUR 15,000,000.00

Total Project Cost

EUR 70,000,000.00

Target fund size is EUR 70 million.

Environmental and Social Summary

Categorised FI (ESP 2019). The Fund Manager is familiar with EBRDs Performance Requirements (PR) through our involvement in the BPM Fund I. For the BPM Fund II, the Fund Manager will need to continue to comply with EBRD's PR 2, 4 and 9, implement the EBRD Environmental and Social Risk Management Procedures for Active Equity Funds, and submit Annual Environmental and Social Reports to the Bank. The 2019 AESR of BPM Mezzanine Fund I has been reviewed by ESD during the due diligence to assess compliance with the PRs; the E&S Risk Management Procedures are reported to be implemented, and most of the loans are low risk. BPM is targeting mezzanine and quasi-equity investments predominantly in small and medium enterprises in sectors such as manufacturing and production, services and distribution.

Company Contact Information

Kalmer Kikas
info@bpmcapital.eu
+372 605 0073
http://www.bpmcapital.eu/
Roosikrantsi 11, 10119, Tallinn

PSD last updated

14 May 2021

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

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

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

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 compliance@ebrd.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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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