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| Beltone Midcap Fund |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 26936 |
| Company name | Beltone Egypt Sub-Fund |
| Country | Egypt |
| Sector | Collective Investment Vehicles |
| Environmental category | FI |
| Department | Private Equity and Investment Funds |
| Status | Pending Disbursement |
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| Date SPI disclosed | January 29, 2009 |
| Projected board date | March 6, 2009 |
| Previous Events | Signed: June 29, 2009
Approved: May 15, 2009 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
| Beltone Egypt Sub-Fund (Beltone Egypt or the Fund) is a closed-end private equity fund which will make equity and equity-related investments in companies, including small and medium-sized enterprises (SMEs), in Egypt. The Fund will primarily target companies with a significant export-based growth potential in sectors such as textile, agribusiness, and packaging. The Fund is a sub-fund of Beltone MidCap Fund, which also proposes a Beltone GCC Sub-Fund for the Gulf Cooperation Council (GCC) countries under the same umbrella. |
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| Project sponsor and major shareholders of project company |
| The Fund will be managed by Beltone Private Equity (BPE) in partnership with SIGEFI Private Equity of Siparex Group in France (Siparex). BPE is the private equity arm of Beltone Financial, a Cairo-based diversified financial services company. Siparex has over thirty years of private equity experience and is one of France’s preeminent private equity groups and a leader in the middle market segment. |
| Total project cost and amount and nature of IFC's investment |
| It is proposed that IFC invest up to $20 million in the Fund. |
| Location of project and description of site |
| Beltone Egypt is a sub-fund of Beltone MidCap Fund, a specialized investment fund (SIF) incorporated in Luxembourg under the form of a limited partnership by shares (SCA) as a société d’investissement a capital variable (SICAV). The fund management team will be based in Cairo, Egypt. The Fund will invest in companies incorporated and operational in Egypt. |
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| Anticipated development impact of the project |
Project Development Impact:
- Private sector development: The Fund will add value to its investee companies, by providing managerial and strategic support to improve their competitiveness and sustainability.
- Adoption of best practices for corporate governance and environmental standards: The Fund will adopt international best practices for environmental and social risk assessment and management, as well as transparency and corporate governance, thus fostering knowledge and skill transfer, and encouraging best practices across the industry.
- Support for SMEs: The Fund is expected to allocate a substantial part of its capital for SMEs.
- Employment: It will have a positive role on employment at a time when the global economic crisis may hurt development and employment in Egypt. |
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| IFC's expected development contribution |
IFC’s role includes:
- Fund Structuring: IFC will work closely with the Manager to ensure the Fund’s structure and terms are in line with IFC and international standards.
- Governance of the Fund: IFC will seek to play a governance role through participation on the Fund’s governing structures. |
| Environmental and social issues - Category FI |
This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.
During appraisal, IFC will analyze the Fund’s expected portfolio and sectors of investment and determine the Applicable Requirements if any, that would include a combination of:
- The IFC FI Exclusion List and
- The applicable National Environmental and Social Laws and regulations and/or
- The IFC Performance Standards
IFC will also review, if required, the capacity of the Fund to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS if required.
The Fund Manager will be required to:
- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS to ensure that its investments/activities are in compliance with the Applicable Requirements;
- Take action to remedy any gaps in SEMS implementation on an ongoing basis;
- Submit a periodic report to IFC as per a format to be provided by IFC. |
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| For inquiries about the project, contact: |
Dr. Abdel-Monem Omran
Chief Investment Officer, Beltone Private Equity
Isis Building, Osiris Street, 9th Floor, Garden City, Cairo, Egypt - 11451
Telephone: +20 2 2792 6610
Fax: +20 2 2792 6875 |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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