Kinnevik Invests USD 10 million in the Micro Finance Fund Microvest

Jun 2009
Stockholm, Sweden, June, 16 2009 - Investment AB Kinnevik (publ) ("Kinnevik") today announced that it in the second quarter has committed to invest USD 10 million in a micro financing fund focusing on equity investments in micro financing companies in emerging markets. In addition, Kinnevik has acquired 30% of the shares in a Ukrainian farming company from the local investment company TAS.

The micro financing fund Mikroinvest II makes equity investments in leading micro financing companies in emerging markets. Kinnevik intends to actively work together with funds experienced management team and also to seek direct investments alongside the fund. In addition to Kinnevik, co-investors in Microvest II include IFC.

The investment in the Ukraine amounts to USD 4 million for 30% of the company with an option to increase the ownership to 50%. The company today owns and farms approximately 17,000 hectares of leased farming land in the regions Charkiv, Tjerkasy, Mykolayiv, Kirovohrad and Vinnytsia.

"Micro financing and farming are focus sectors for new investments in Kinnevik and we are pleased to have identified investments within these growth areas. Through Kinnevik's earlier investment in the African micro financing company Bayport and the new investment in Microvest, Kinnevik has a broad exposure to a sector in which we see a strong growth potential. The investment in the Ukraine follows the successful farming investments that Kinnevik has made previously and through Kinnevik's considerable expertise in the sector we expect to contribute to building a modern and profitable agricultural business," says Henrik Persson, Head of New Investments.

Source : Kinnevik

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