EBRD To Invest up to 50 Mln Euro in CEE Investment Fund

TIRANA, Feb 10ؔhe European Bank for Reconstruction and Development (EBRD) said on Wednesday it is investing up to 50 million euro ($68.5 million) in a new investment fund, Accession Mezzanine Capital III L.P (AMC), to support the corporate sector in central and eastern Europe (CEE), including Albania.
The fund, a new offering from Mezzanine Management Central Europe Limited (MMCE), will focus on supporting private equity-backed acquisitions with mezzanine capital, as well as providing additional financing to enterprises with a proven business model and sustainable cash flows, helping them to pursue further growth, the EBRD said in a statement.
“In the current market conditions when availability of debt financing remains scarce, this project will provide a much-needed source of capital for the further development of the corporate sector in the region,” it added.
AMC III aims to raise 300 million euro and has received aggregated commitments of 130 million euro at its first closing. It will target investments in mid-cap manufacturing companies and service providers, operating in central and eastern Europe. A portion of the fund’s resources will be dedicated to enterprises in Ukraine, Russia and Turkey.
The EBRD has also invested in Accession Mezzanine Capital I and II funds. So far during the life of AMC I and II, the fund managers have reviewed over 500 transaction proposals and have made 27 investments worth over 320 million euro.
EBRD has committed over 2.5 billion euro in private equity and mezzanine funds operating in the region, which have raised additional resources in excess of 12 billion euro.