Fund Manager of Financial Instruments in Bulgaria EAD (FMFIB) has launched a market test for the Mezzanine/Growth Fund financing instrument. This is the third financing instrument to be published that is co-financed under Operational Programme Innovations and Competitiveness 2014-2020 (OPIC) from the European Regional Development Fund (ERDF). With the start of consultations on that instrument, more than 80% of the total of the resources placed under the management of the FMFIB in equity and quasi-equity financing instruments from the Programme has been channelled to the market.
The Mezzanine/Growth Fund instrument has a budget of EUR 40 million allocated under the OPIC 2014-2020, with private financing of almost EUR 27 million expected to be leveraged. The Fund will invest in SMEs with growth potential and at a mature stage of business development, primarily by means of equity and quasi-equity participation.
The Mezzanine/Growth Fund can provide access to alternative financing for SMEs having high growth rates and planning to expand their business operations in Bulgaria and abroad. It can support expansions of production and capacity, and new product development. Along with that, the instrument will focus on strengthening the management capacity, corporate governance and reporting systems of the investees with the aim of improving their competitiveness, in view of the challenges faced by businesses worldwide.
The launched market test aims to optimize the structure of the Mezzanine/Growth Fund to match market requirements, and is targeted at stakeholders such as fund managers, investors, potential final recipients, etc.
Suggestions and comments on the indicative technical specifications can be made by 13 April 2017 at the following e-mail address: MGFOPIC@fmfib.bg. For more information and FAQs on the market test consultations, the FMFIB team can be reached by phone at +359 2 801 40 50.
Detailed terms for the financing instrument are available on the FMFIB website, under the Financing Instruments section.
