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Markets
01/04/2008
EBRD to acquire 10% in Aureos Central Asia Fund LLC
The EBRD informed that its Board of Directors will consider the issue of subscription for 10% equity stake in the Fund on 29 April.
"The Bank is ready to acquire 10% stake for US$10 million in the Fund, charter capital of which should make US$100 million," it was reported.
IFC endorsed the investment on 25 October, signed a relevant agreement on 23 November and made investments on 18 December 2007. About US$6 million of its investment is designed for Azerbaijan.
EBRD indicates that at least 70% of the Fund’s capital will be invested in Kazakhstan with the remaining amount in the other target countries.
The Fund will consider investments in the range of US$2 to 10 million per company.
EBRD expects that the Fund will promote to development of private equity market in the target countries; demonstration that private equity funds are a sustainable form of financing; transfer of technical, operational and financial skills to the portfolio companies; and improvement of corporate governance.
Through local investment teams in Almati (Kazakhstan) and Baku (Azerbaijan) the Fund’s target industries will include consumer goods, food processing, oil and gas-related services, pharmaceutical, telecom, construction materials, financial services and logistics. The Fund is also ready to make investments in small and medium-sized enterprises (SMEs).
Aureos, established in 2001 as a joint venture between CDC and Norfund, is a private equity group which focuses on investing in SMEs in emerging markets. The Fund is given technical support from Aureos Advisers Ltd in London and Aureos Capital Ltd in Mauritius.
"The Bank is ready to acquire 10% stake for US$10 million in the Fund, charter capital of which should make US$100 million," it was reported.
IFC endorsed the investment on 25 October, signed a relevant agreement on 23 November and made investments on 18 December 2007. About US$6 million of its investment is designed for Azerbaijan.
EBRD indicates that at least 70% of the Fund’s capital will be invested in Kazakhstan with the remaining amount in the other target countries.
The Fund will consider investments in the range of US$2 to 10 million per company.
EBRD expects that the Fund will promote to development of private equity market in the target countries; demonstration that private equity funds are a sustainable form of financing; transfer of technical, operational and financial skills to the portfolio companies; and improvement of corporate governance.
Through local investment teams in Almati (Kazakhstan) and Baku (Azerbaijan) the Fund’s target industries will include consumer goods, food processing, oil and gas-related services, pharmaceutical, telecom, construction materials, financial services and logistics. The Fund is also ready to make investments in small and medium-sized enterprises (SMEs).
Aureos, established in 2001 as a joint venture between CDC and Norfund, is a private equity group which focuses on investing in SMEs in emerging markets. The Fund is given technical support from Aureos Advisers Ltd in London and Aureos Capital Ltd in Mauritius.
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