PINEBRIDGE NEW EUROPE PARTNERS (F.AIG NEW EUROPE FUND)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 5049

Status Repaying

Location

Regional

Business Sector

Equity Funds

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 5049

Status Repaying

Location

Regional

Business Sector

Equity Funds

Notice Type

Private

Environmental Category

Approval Date

24 Nov 1998

Disclosure date

28 May 1998

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

A co-investment agreement with the AIG New Europe Fund, a private equity fund investing in central and eastern Europe, focusing on the Czech Republic, Hungary, Poland and Romania.

AIGNEF will make equity or quasi-equity investments in private companies, typically in excess of 15 per cent of the outstanding shares of a portfolio company, which will permit AIGNEF and the SPV to exercise significant influence or control over a portfolio company's business, financial strategy and implementation. The size and regional coverage of AIGNEF will enable it to participate in medium-sized privatisations as well as in industry consolidations that will emerge both within and across countries in the region.

The investment will provide portofolio companies a combination of management, financial and technical expertise, which will enable them to expand their operations and produce internationally competitive products on a commercially viable basis. The AIGNEF's unique strategic focus on industry consolidations and the development of regional market leaders will be a very important factor towards achieving this goal.

Transition Impact

AIGNEF and the SPV will directly contribute to enhancing entrepreneurship and the efficiency in investee enterprises by providing an active ownership role, strong governance and transfer of know-how to privatised and private companies.

The Client

The AIG New Europe Fund (AIGNEF) is sponsored by the American International Group (AIG), a large international insurance and financial services organisation. AIGNEF is managed as a joint venture between AIG Capital Partners, the private equity arm of AIG, and Central European Trust, a strategic and financial advisory firm specialising in central and eastern Europe. AIGNEF’s principal focus is the acquisition of equity and equity-related securities of private sector companies operating primarily in the Czech Republic, Hungary, Poland and Romania. AIGNEF will also consider investments in companies operating primarily in Bulgaria, Croatia, the Former Yugoslav Republic of Macedonia, Moldova, the Slovak Republic, Slovenia and Ukraine.

EBRD Finance

The EBRD will co-invest alongside AIGNEF through a special purpose vehicle (SPV). The EBRD has subscribed for a capital commitment of US$ 50 million (EUR 46 million) in the SPV’s capital. The manager of the SPV is the same as that for AIGNEF. The Bank may also co-invest directly alongside AIGNEF for an aggregate amount of up to US$ 25 million (EUR 23.2 million). The following investments have been approved under this direct co-investment line:

EmpikCentrum Investments S.A. (ECI): in July-August 1999 AIGNEF and the EBRD invested US$ 20 million (EUR 18.5 million) each in a convertible bond issued by ECI to finance its operations in Poland (department stores, multimedia, books press, cosmetics stores, mail order, related wholesale).

Project Cost

AIGNEF held its initial closing in August 1998 with total capital commitments of US$ 260 million (EUR 241 million) and may hold subsequent closings for aggregate capital commitments of up to US$ 350 million (EUR 324 million).

Environmental Impact

The SPV will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the SPV will assess potential environmental issues associated with its investments, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

None

Company Contact

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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