Hungarian SRP - framework

Location:

Hungary

Project number:

4371

Business sector:

Equity funds

Notice type:

Private

Environmental category:

FI

Approval 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

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

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