SIH announces investment in waste management and renewable energy
Bratislava, June 13, 2019 - Slovak Investment Holding (SIH) and three financial intermediaries - Wasteland Investment Management Ltd., CEE Capital Management, a.s. and IPM Avanea Eco Management a.s. (a member of the IPM Group investment group) – have launched a cooperative venture in environmental projects.
SIH has provided fund managers with a total of €67.8 million to support these projects. To be precise, each fund manager has received €20.8 million to support waste management projects. Wasteland Investment Management, which ranked first in the public procurement procedure, also gained €5.47 million for renewable energy projects. Fund managers will support these projects with equity or quasi-equity financing.
"We have been looking forward to launching equity investments in waste management and renewable energy. In Slovakia, these key areas have been somewhat overlooked as an investment opportunity and we are, therefore, proud that Slovak Investment Holding is helping to develop and foster the financing of this important sector", explains Ivan Lesay, CEO of SIH.
Fund managers are obligated to contribute their own funds in addition to SIH’s financial input. Each company’s investment totals 5% of that which has been invested by SIH. Subsequently, at project level, fund managers must find additional co-investors. The fund manager's/co-investor's investment ratio may reach a maximum of 70:30. Taking into account this co-financing mechanism, SIH's initial investment will help create projects worth an overall amount of around €130 million.
The investment period began in the first half of 2019 and will continue until the end of 2023. Investments can support both public and private companies. The selection of projects to be supported is completely in the hands of fund managers.
Project partners:
Radúz Motáň, Managing Director and Partner of Wasteland Investment Management: “Slovakia still faces the challenge of increasing its energy share from renewable sources compared with other EU countries. Our ambition is to invest as expeditiously as possible in the high-end projects that will make advances in this area, both in terms of scope and quality.“
Martin Krištofčák, Member of the Board of Directors of CEE Capital Management: “CEE Capital Management embraces this challenge. Our goal is for our managed WTEP Fund to be a responsible and professional investment partner in the area of waste management transformation. It is not our ambition to compete with established companies. On the contrary, we offer the opportunity, through professionally managed investment projects, to implement new technological solutions in the field of waste collection and recycling. We are pleased that Slovakia, by adopting unique projects like this, can become a pioneer among EU countries for its transformation into a circular economy.”
Marián Boček, Managing Partner of IPM Avanea Eco Management: “Our management and consulting company IPM Group is a strong and globally successful player in the infrastructure and unique technologies of the future. We are convinced that our experience and know-how will convey innovative projects to Slovakia that will create long-term value for the environment and society as a whole.”
Information on Slovak Investment Holding
SIH is a 100% state-owned joint stock company. Its primary goal is to support strategic public and private investments in Slovakia in the areas of infrastructure, energy efficiency, waste management, social economy, health, cultural and creative industries and small and medium-sized enterprises. SIH draws on European Structural and Investment Funds to make investments. Projects are financed exclusively in a repayable form, i.e., using financial instruments instead of grants.