Early Warning System

Countries

Ukraine

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

International Finance Corporation (IFC)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Apr 20, 2023

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Horizon Capital Associates IV, LLC

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Finance
Industry and Trade

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Equity

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 30.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Other Related Projects

Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 18, 2023

Disclosed by Bank Mar 14, 2023

Contribute Information
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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

A stated by the IFC, the proposed project consists of:
(i) an additional IFC equity commitment of up to $30 million in Horizon Capital Growth Fund IV (HCGF IV or the Fund) in addition to an already existing commitment of up to $30 million in the Fund leading to a total commitment of up to $60 million; and
(ii) a co investment envelope of up to $30 million, on a delegated authority basis, to invest in select companies alongside Emerging Europe Growth Fund III (EEGF III) and HCGF IV. HCGF IV is a private equity fund with a target size of $250 million. The Fund will invest primarily in mid-cap fast-growing technology and export-oriented companies, primarily active in Ukraine (around 80% of Fund size) and Moldova benefiting from cost competitive local platforms with global reach.
The Fund is expected to increase access to private equity capital and value creation for companies in Ukraine (around 80% of Fund size) and Moldova, including furthering investments in women-owned/led companies.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The Project has been classified as category FI-2 according to IFC's Sustainability Policy.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

International Finance Corporation (IFC)

A proposed IFC equity commitment of up to $30 million, resulting in an aggregate commitment of up to $60 million to the Fund.

Furthermore, IFC will set up a separate co-investment envelope of up to $30 million, on a delegated authority basis, to be invested in select companies alongside EEGF III and HCGF IV.

Financial Intermediary

A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.

HORIZON CAPITAL (Financial Intermediary)

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

From the IFC's website:

The Fund will be domiciled in Delaware, USA and will be managed by Horizon Capital Associates IV, LLC (Horizon Capital or the Fund Manager), a management company registered in Delaware, which will be advised by Horizon Capital Advisors, LLC, also registered in Delaware, with a wholly owned subsidiary based in Kyiv, Ukraine, also Horizon Capital Advisors, LLC. Horizon Capital was founded in 2006 and has been investing in the Ukraine and Moldova for over 17 years, across five funds, pursuing its tech and export-oriented investment focus for over a decade.

IFC previously invested in Emerging Europe Growth Fund II (2008 vintage), EEGF III (2017 vintage) and invested in HCGF IV at Initial Closing in September 2022.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

Financial Intermediary - Horizon Capital:

Tetyana Bega - Investor Relations and Communications Director
Email: TBega@horizoncapital.com.ua
Website: https://horizoncapital.com.ua/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org