EU-ARMENIA SME FUND, SCSP
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
EU-Armenia SME Fund is a private equity fund managed by Amber Capital. It had its First Close in January 2020, at USD 31mln, and is currently seeking to raise up to USD 75mln. The Fund is the initiative of EBRD (also an LP) and backed by a first-loss tranche from the European Commission. EBRD selected Amber following an RFP process.
What is our funding objective?
Building Prospects intends to commit USD 7mln to the Fund, helping it reach its target size and broadening the institutional LP base. Amber intends to invest growth equity into Armenian SMEs with a sector agnostic strategy.
Why do we fund this investment?
The Fund targets SMEs in a country where there is limited growth equity available. FMO’s commitment will help support the development of the Private Equity industry in Armenia. The Fund’s investments are expected to lead to job creation (also outside the capital Yerevan) and contribute to SDGs 8 and 10.
What is the Environmental and Social categorization rationale?
E&S category has been determined as category B (medium risk) based on the pipeline, investment strategy, and the relatively small fund/ticket size (with a focus on SMEs). FMO and EBRD will support the investment teams (training), review the ESMS and require consultation for high-risk investments.
- Website customer/investment
- http://www.ambercapital.com
- Region
- Europe & Central Asia
- Country
- Armenia
- Sector
- Infrastructure, Manufacturing and Services
- Publication date
- 4/29/2020
- Effective date
- 12/15/2020
- Total FMO financing
- USD 7.00 MLN
- Funding
- Building Prospects
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B