The Board of Directors at the European Bank for Reconstruction and Development (EBRD) is scheduled, on 24 February 2021, to approve an equity investment of up to €20m, in favour of Amethis MENA Fund II.
The project’s total cost stands at €150m, with the EBRD’s participation in the Fund set to enable it to achieve a first closing.
The Luxembourg registered Amethis Investment Fund Manager is an Alternative Investment Fund Manager (AIFM).
The Fund will seek to achieve long-term capital growth by undertaking equity and equity-linked investments, predominantly in small- and medium-sized enterprises (SMEs) in Morocco, Tunisia, Egypt, and Jordan.
The EBRD’s proposed investment is expected to contribute to its concept of resilient transition, by increasing the availability of private equity capital. Additionally, the project is expected to support the bank’s concept of competitive transition, by increasing the competitiveness of investee companies.
The Fund has an Environmental and Social (E&S) Management System based on the International Finance Corporation’s (IFC) Performance Standards, and is a signatory of the Principles for Responsible Investment.
Previous work with Amethis has demonstrated its compliance with the EBRD’s Performance Requirements (PRs) 2, 4, and 9, as well as compliance of investee companies with national environmental and social standards.
The Fund will have a diversified portfolio of investments for which the environmental and social risk is expected to be low to medium.