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EEGF III raises $200 mln with EBRD support to finance SMEs in Moldova, Ukraine

EEGF III raises $200 mln with EBRD support to finance SMEs in Moldova, Ukraine EBRD

CHISINAU (Moldova), January 25 (SeeNews) - Private equity fund EEGF III has raised $200 million (176 million euro) with the support of the European Bank for Reconstruction and Development to finance small and medium-sized enterprises in Moldova and Ukraine, the bank said.

Fast growing and export-oriented small and medium-sized enterprises (SMEs) in Ukraine and Moldova will benefit from the activity of Emerging Europe Growth Fund III (EEGF III), which has exceeded its maximum target capital amount of $150 million and reached $200 million, the EBRD said in a press release on Thursday.

The EBRD invested an additional $8 million in the final closing of EEGF III, on top of its original commitment of $30 million.

Through such investments, the EBRD contributes to the development of the private equity industry in the region, thus creating alternative financing opportunities for SMEs and strengthening the resilience of local economies, the lender noted.

EEGF III is a private equity fund, which held its first closing in 2017 and is managed by Horizon Capital, an independent private equity firm established in 2006.

The fund is also supported by international investors, foundations, family offices and other private investors alongside international financial institutions  such as Western NIS Enterprise Fund (WNISEF), the Netherlands Development Finance Company (FMO), the International Finance Corporation (IFC), PROPARCO, a development financial institution partly owned by French Development Agency (AFD), German Investment and Development Corporation (DEG) and Danish Investment Fund for Developing Countries (IFU).

The EBRD  has supported 125 projects worth €1.26 billion in Moldova so far.

($=0.8805  euro)