An equity investment of DM 20 million in a private equity fund for a term of ten years.
Project objectives: The fund will seek to maximise capital growth in respect of its equity investments in the Czech Republic, Hungary, Poland and the Slovak Republic (the "target countries") by mainly taking significant minority stakes in private companies primarily situated in the peripheries of the target countries where equity financing is still short of demand.
The operation's main transition impact will be achieved by addressing existing deficiencies in the capital markets of the target countries, which are still hindered by lack of transparency, low levels of trading and liquidity and insufficient consolidation of overall activity with high-volume activities conducted off the main market. Investee companies will achieve a prime transition improvement in terms of corporate governance and transfer of management know-how.
DBG Osteuropa Holding GmbH, proposed to be established in Germany as a ten-year limited liability company.
The purchase of a capital unit in the fund with a nominal value of DM 20 million.
DM 100 million, half of which is financed by Deutsche Bank. Private investors and the EBRD will cover the remaining part.
The fund will carry out its operations in accordance with the EBRD's Environmental Guidelines for private equity funds, which provide for the integration of environmental due diligence into every transaction and a requirement that investee companies comply, at a minimum, with national and local health, safety and environmental regulations and standards. The fund manager will be submitting annual environmental reports to the EBRD.
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Text of the PIP