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Outdoor lighting in Ukraine

Already in 1990, a Belgian group, specialized in the manufacturing of outdoor lighting, gained a foothold in the (former) Soviet Union by establishing a joint venture company in the region of Ternopil (500 km west of the city of Kiev). The local joint venture partner was at that point in time a State Owned Enterprise that, some years after this operation, became privatized.

In order to inject state of the art technology into this joint venture, a comprehensive investment program amounting to approximately EUR 3 million was initiated.

Given the risk profi le of the region and its former experience with BMI-SBI as a risk-capital provider through a previous joint investment in the People’s Republic of China, the Belgian partner requested BMI-SBI to participate in the fi nancing of its Soviet Union project by taking an initial stake of 23 % (approximately EUR 0.5 million) in the equity capital of the joint venture company at its side (28 %) and the local State Owned Enterprise (initially 51 %, presently reduced to 20 %).

Following the independence of Ukraine, the joint venture company now primarily focuses on the local Ukrainian market for the sale of its products (public lighting and decorative lighting). Its turnover is mainly generated by public lighting projects in major cities such as Kiev, Dnipopetrovsk, Odessa, etc… Notable are for instance the realization of the lighting projects for the Puppet Theatre, the Eurovision 2005, the Paton and Moscovsky bridges in Kiev.

Besides this Ukrainian co-investment, BMI-SBI is also at present participating in the fi nancing of the Hungarian subsidiary of this Belgian group. In the past, BMI-SBI has also co-fi nanced other international business ventures by this group in China, Turkey and Vietnam.