East Capital has recently announced its plans to start a new risk capital fund that will focus on the banking sector in Russia, the other CIS states and Eastern Europe. The fund's goal is to attain a minimum EUR 300 million in available risk capital.

 

Handelsbanken has decided to accept the invitation from East Capital to participate as a strategic investor in this fund and will invest up to EUR 50 million.

 

As a strategic investor in the fund, Handelsbanken will be offered a seat on the fund's advisory committee and a presence on the boards of those banks and financial institutions in which the fund invests.

 

Lars O Grönstedt, Handelsbanken's group chief executive, says, "We see this investment and our collaboration with East Capital as financially attractive and a strategically interesting commitment. We will gain a unique insight into the rapidly expanding financial markets in the region, which is valuable considering our newly established banking operations in Moscow and St. Petersburg."

 

Peter Elam Håkansson, the chairman of East Capital, states that with the participation of Handelsbanken, East Capital and the new fund will gain access to individuals with long banking experience and with expertise on granting loans, administration and cross-selling.