InvestBG Equity Instrument

The InvestBG Equity Instrument (“Facility”) is designed to support one of the strategic policy objectives of the Bulgarian Ministry of Economy of fostering investments in sectors that create high value added and increase the overall competitiveness of the economy through the creation and development of high-growth and innovative SMEs by facilitating their access to equity financing.

TThe budgetary resources under the Facility originate from reflows from the JEREMIE initiative supported from the European Regional Development Fund and national co-financing in the 2007-2013 period.

Through the InvestBG Equity Instrument, and acting on behalf and in the ultimate benefit of the Government of Bulgaria, EIF will:

1. Provide capital commitments to selected venture capital and private equity funds that include Bulgaria as part of their geographic focus (Primary Fund Window) – total budgetary allocation of EUR 50m.
   When making a commitment under the Primary Fund Window, EIF shall in addition co-invest alongside the Facility with other resources under its management. Such co-investment will represent an amount equal to at least 50% (with a target of 100%) of the amount committed from the Facility. In order to be eligible under the Facility, applicants shall commit to invest in Eligible Final Recipients at least 1.5x (with a target of 2x) the amount of the relevant Facility commitment drawn down for the purpose of investments.
2. Co-invest, on a deal-by-deal basis, alongside selected venture capital and private equity funds investing in Bulgaria (Co-Investing Window) – total budgetary allocation of EUR 10m.
   When making an investment under the Co-Investing Window, EIF will not have to co-invest alongside the Facility from other resources under its management. The matching of the resources invested under the Co-Investing Window will be effectively provided by the VC and PE funds and/or other private investors which participate in the respective co-investment round, provided that EIF (taking together resources from the Facility and potentially any other resources under its management) will not participate in more than 50% of a co-investment round.