Project number:


Business sector:

Insurance, Pension, Mutual Funds

Notice type:


Environmental category:


Approval date:

09 Apr 2002



PSD disclosed:

22 Mar 2002

Project Description

An investment in a private pension fund management company. As part of the Estonian pension reform, LHV Asset Management (LHV AM) has established and is managing two new mandatory pension funds. The purpose of the project is to support the Estonian pension reform process through investment in a pension fund management company. LHV AM has established, and is managing and marketing two new ‘2nd Pillar’ mandatory pension funds, alongside its voluntary pension fund.

Transition Impact

The pension reform process, under which employees in Estonia will be able to contribute to new privately-managed ‘2nd Pillar’ mandatory pension funds, will have a broad impact on the Estonian financial sector, the wider economy, and on long-term social welfare. The EBRD has emphasised the importance and desirability of pension reform in the past and has already participated in similar reforms initiated in other countries. The operation will support the reforms, strengthening the pension fund management industry by supporting a young, flexible and innovative company, increasing diversity and competition in the Estonian financial services market.

The Client

LHV AM was previously a 100 per cent owned subsidiary of the Estonian investment bank, Lõhmus, Haavel & Viisemann (LHV), and already manages an Estonian voluntary pension fund.

EBRD Finance

A EUR 1.06 million investment in the equity of LHV AM. Under the transaction, the EBRD will purchase a combination of existing and newly-issued shares. The effect of the transaction will be that LHV AM will be a fully-funded pension fund management company, as per the Funded Pensions Act of Estonia, with capital of over 45 million Estonian Kroons (EEK) / EUR 2.9 million.

Project Cost

The investment will total EEK16.5 million (EUR 1.06 million).

Environmental Impact

LHV AM will manage its pension funds in accordance with the EBRD’s Environmental Guidelines for Passive Investments including the Environmental Exclusion List. LHV AM will also submit annual environmental reports to the EBRD in accordance with the Environmental Guidelines.

Technical Cooperation


Company Contact


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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