Project detail - EU-ARMENIA SME FUND, SCSP

EU-ARMENIA SME FUND, SCSP

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Who is our client

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.

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 we fund this project

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.

Environmental and social 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 client
http://www.ambercapital.com
Region
Europe & Central Asia
Country
Armenia
Sector
Infrastructure, Manufacturing and Services
Signing date
12/15/2020
Total FMO financing
USD 7.00 MLN
Fund
Building Prospects
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