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    Signature(s)

    Amount
    € 25,000,000
    Countries
    Sector(s)
    Ukraine : € 25,000,000
    Services : € 25,000,000
    Signature date(s)
    19/12/2023 : € 25,000,000
    Link to source

    Summary sheet

    Release date
    12 September 2023
    Status
    Reference
    Signed | 19/12/2023
    20230284
    Project name
    Promoter - financial intermediary
    HORIZON CAPITAL GROWTH FUND IV
    HORIZON CAPITAL GP IV LLC
    Proposed EIB finance (Approximate amount)
    Total cost (Approximate amount)
    EUR 25 million
    EUR 278 million
    Location
    Sector(s)
    Description
    Objectives

    Horizon Capital Growth Fund IV is a generalist fund supporting the growth of small and medium-sized enterprises (SMEs) active in Ukraine and Moldova.

    Horizon Capital Growth Fund IV - USD 300m fund, providing growth and expansion capital in the form of equity and quasi-equity instruments in established, export-oriented companies and late-stage technology leaders with global and regional revenues benefitting from the significant pool of technical talent in Ukraine and Moldova. The project will have a significant impact on: (i) supporting job creation in Ukraine and Moldova, particularly among the youth; (ii) expanding the digitalisation of the countries; (iii) promoting and maintaining gender balance and gender smart practices within the fund and portfolio companies; (iv) increasing access to finance for MSMEs at a time where growth finance is and cost-prohibitive, further exacerbated by the current geopolitical turbulence; (v) raising ESG and corporate governance in portfolio companies.

    Additionality and Impact

    The operation concerns an investment in Horizon Capital Growth Fund IV - USD 300m fund, providing growth and expansion capital in the form of equity and quasi-equity instruments in established, export-oriented companies and late-stage technology leaders with global and regional revenues benefitting from significant pool of technical talent in Ukraine and Moldova. The project will address the gap in financing for SMEs at a time where access to finance is limited and cost-prohibitive, further exacerbated by the current geopolitical turbulence. Furthermore, it will have a significant impact on (i) supporting job creation in Ukraine and Moldova, particularly among the youth; (ii) expanding the digitalisation and digital services within the countries (iii) promoting and maintaining gender balance and gender smart practices within the fund and portfolio companies; and (iv) raising ESG and corporate governance in portfolio companies.


    The project aligns strongly with the priority areas of NDICI - Global Europe, in supporting critical projects that ensure innovation via digital connectivity and entrepreneurship; sustainable development by ensuring sustainable investment in SMEs, Mid-Caps that are able to to withstand the macroeconomic shocks in the region, further supporting the EFSD+ priorities of creating high-value jobs and supporting the expansion of SMEs towards regional economic integration and connectivity.


    Furthermore, the project will support The Europe Initiative (TEI) for Moldova, Moldova - Growth and Jobs that aims to contribute to the longer-term social and economic resilience of the local communities of the Republic of Moldova through enhance business and job opportunities and provide equal opportunities for all (gender, age, ability, or nationality) which are development priorities also envisaged by the proposed operation. 


    Additionally, it will advance the strategic development priority under the EU cooperation and support in 2021? 2027 is guided by the 2020 Joint Communication on the "Eastern Partnership policy beyond 2020: Reinforcing Resilience, an Eastern Partnership that delivers for all" which commits to investing in people, proposing a new deal for youth that highlights human capital development including education reform and opportunities for young people.


    The commitment of EIB into the Fund will have a strong demonstration effect in confidence-building towards Ukraine in businesses, entrepreneurs and international investors, highlighting the investment opportunities and sustainable development. The EIB participation will support the Fund in reaching its target size and will ensure the full implementation of the intended investment strategy. Moreover, the EIB investment will further ensure the adoption of best practices in the areas of governance and sustainable development. EIB will provide input into the environmental and social policies of the Fund and will support the integration of gender lens in its investments.


    It is expected that the project will advance the following Sustainable Development Goals ("SDGs"): SDG 8 - Decent Work and Economic Growth; SDG 9 - Industry, Innovation and Infrastructure; SDG 10 - Reduced Inequalities.

    Environmental aspects
    Procurement

    The Fund will comply with the Environmental and Social Policies of the Bank.

    The Fund will comply with the procurement policies of the Bank.

    Milestone
    Under appraisal
    Approved
    Signed
    20 September 2023
    19 December 2023
    Link to source

    Disclaimer

    Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
    They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).

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