Aureos, established in 2001 as a joint venture between CDC and Norfund, is a private equity group which focuses on investing in SMEs in emerging markets. The Fund will be managed by local investment professionals (Investment Team) with operational and technical support from Aureos Advisers Ltd in London and Aureos Capital Ltd in Mauritius.

It is proposed that IFC invest up to $10 million.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	10.0

* These investment figures are indicative

The Fund will be formed as a Mauritius limited liability company and will have a local Investment Team based in Almaty, Kazakhstan and Baku, Azerbaijan.

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 practice 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.

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.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal, IFC analyzed the Fund’s expected portfolio and sectors of investment and determined the Applicable Performance Requirements based on an analysis of the potential social and environmental risks associated with the expected portfolio and considering IFC’s investment. The Applicable Performance Requirements are:

- The IFC FI Exclusion List
- The applicable National Social and Environmental Laws and regulations
- The IFC Performance Standards

Aureos Central Asia Fund will apply Aureos Capital''s Social & Environmental Management System (SEMS). IFC reviewed Aureos Capital’s SEMS and has found this to be satisfactory.

Based on the Applicable Performance Requirements and SEMS and capacity review, Aureos Central Asia Fund will be required to:

- 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 Performance Requirements
- Submit a periodic report to IFC as per the standard Aureos reporting format provided to IFC for previous investments