Under its Facility for Euro-Mediterranean Investment and Partnership (FEMIP), the European Investment Bank (EIB) is participating with EUR 10 million in the setting up of the EuroMena Fund. Focused on investments in mid-market companies in the Mediterranean Countries, the fund is promoted by Capital Trust. With a target of EUR 80-100 million, this private equity fund will be aiming at sectors in which to build regional groups.
The Fund was launched today in Beirut in the presence of Mr. Philippe de Fontaine Vive, Vice President of the EIB in charge of FEMIP, and other European and Arab lead investors.
At the official signing ceremony Mr. De Fontaine Vive commented: The development of regional groups is a key factor for the improvement of the competitiveness of the Mediterranean economies. By combining national companies from the same industry across the region, the fund will contribute to increased South-South integration in the region's manufacturing and services sectors. Euromena's regional approach is a first in the region and is fully in line with FEMIP's objectives. With priority being given to Small and Medium-sized Enterprises and co-investment with other national, regional or international investors, this operation will support foreign direct investment in the Mediterranean and the development of the region's financial sector.
The EuroMena Fund will contribute to the development of the private equity industry that offers a type of financing still relatively new and difficult to find in the region. With the extensive twenty year-experience in leading edge markets such as Europe and the United States of its promoter, the Capital Trust Group, EuroMena will contribute to raising investment and governance standards in the Mediterranean partner countries (MPCs).
Together with its loans and technical assistance grants, FEMIP promotes private sector development by engaging in equity and quasi-equity investments in private entreprises to help the MPCs meet the challenges of economic and social modernisation and enhanced regional integration. FEMIP risk capital is financed from the Community budget (EUR 200 million over the period 2001-2006) and by the FEMIP Trust Fund set up in December 2004 (EUR 33.5 million contributed directly by 15 of the Member States and the European Commission).
Further information on the FEMIP and the Mediterranean Partner Countries is also available on the Bank's website in the section devoted to the Mediterranean Partner Countries: http://www.eib.org/projects/regions/med/index.htm