Hungarian SRP - framework

Location:

Hungary

Project number:

4371

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Target board date:

17 Dec 1996

Status:

Completed

PSD disclosed:

25 Nov 1996

Project Description

The Hungarian Special Restructuring Programme (SRP) will undertake equity investments to support the restructuring and turnaround of viable under-performing companies. The Hungarian SRP will restructure medium-sized companies by providing higher risk equity finance, hands-on turnaround management expertise, technical cooperation support, and a framework to promote debt and operational restructuring.

 

Transition Impact

The Hungarian SRP will provide know-how transfer, improved corporate governance, and higher risk equity capital. This will support banks in their efforts to restructure problem loans.

The Client

The Hungarian SRP will invest exclusively in viable under-performing medium-sized companies which have limited ability to raise capital. This will include companies in the work-out portfolios of local banks and recent management buy-outs that have significantly under-performed since privatisation. The operation will be managed by a German turnaround specialist, Sandtner Hamilton & Management GmbH.

EBRD Finance

Up to ECU 30 million of early-stage equity to be invested in a portfolio of 10 to 15 Hungarian companies through a managed account facility.

Project Cost

Up to ECU 30 million.

Environmental Impact

In this project the manager will be required to adopt and implement the Bank's Environmental Procedures for Funds.

All environmental studies will involve a comparison of the environmental and health and safety standards of the investee companies with Hungarian and EU standards. Environmental Action Plans will need to include measures required to achieve compliance with these standards within a timeframe satisfactory to the Bank.

Technical Cooperation

The Hungarian SRP will be supported by technical cooperation funds of up to ECU 5.4 million.

 

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

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

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