1. Funding of Investment Opportunities in Slovakia
January 2018

2. SZRB Asset Management current activities
Manager
Advisory
Manager
EFSI
SIH – Fund of Funds
Implementation of ESIF in Slovakia using Financial Instruments
Investment Plan for Europe - EFSI
Local entry and advisory point for EFSI, EIAH, EIPP
SZRF – JEREMIE
Implementation of JEREMIE Funds in Slovakia since 2016

4. SIH - Slovak Investment Holding
An initiative proposed by the Ministry of Finance of the Slovak Republic to support national investment priorities
Centralised and more efficient implementation of ESIF via financial instruments in Programming period
Mandate: Government Resolution
ESIF allocation: min. 3% from each Operational Programme
Expected total allocation: approximately EUR 552m
Manager: SZRB Asset Management
Supervisory Board: nominees from MoF and Managing Authorities
Investment strategy: in line with Operational Programmes
Mechanism: Fund of funds
The Slovak Government created the Slovak Investment Holding: a fund of funds for the implementation of the ESIF in the programming period via Financial Instruments
Various benefits of implementing ESIF via Financial Instruments instead of via grants exist; e.g. FIs are repayable and allow leveraging from the International Financial Institutions and qualified private investor money
Following the government resolution, 3% of each Operational Programme will be allocated to Slovak Investment Holding which represents approximately 552 million (ESIF + National co-financing) to be used for financial instruments
The manager of the SIH, SZRB Asset Management, is a 100% subsidiary of Slovak Guarantee and Development Bank (SZRB). SZRB is operating on a commercial basis and is fully owned by the Ministry of Finance
SZRB AM will manage the fund of funds and propose the investment strategy which will then be approved by the Supervisory Board of the Slovak Investment Holding where all Managing Authorities of the respective Operational Programmes are represented

5. SIH – investment areas allocations
Financial Instruments
Sub-funds
OP Allocation or Financial Instruments
Equity
Mezzanine
Soft Loans
Guarantees
Infrastructure Fund ✔
Energy Efficiency Fund
Waste Management Fund
SME Fund
Social Economy Fund
Fund of Funds
EURm
The Investment strategy according to the Ex-ante Assessment identifies areas suitable for the use of financial instruments, quantifies market gaps, and proposes investment strategy in terms of financial instruments to be used and the allocation to each instrument
Suggested are 6 thematic sub-funds…
The ex-ante assessment identified a gap of EUR 1,305m
Actual allocation is now at EUR 545m (42% of ex-ante proposed total allocation)

6. SIH Investments Infrastructure (direct) Energy Efficiency
Mezzanine tranche in PPP project D4R7 – signed in 2016
Loan for Safety Diagnosis Vehicles railway project – to be signed Q1 2018
Possible further infrastructure (road, railways, water) projects
Energy Efficiency
PRSL residential buildings – public procurement ongoing (close Feb2018)
Public buildings – preparing EPCs framework for Slovakia
SMEs – under preparation
Waste Management and renewable energy
Public procurement to be launched Q (waste processing plants, waste-to-energy facilities, etc.)
SMEs
Equity for seed SMEs – under preparation
VC equity for growth stage SMEs – preparing for direct implementation
FLPG – public procurement ongoing (close Jan2018)
PRSL – public procurement ongoing (close Jan2018)
Social Economy
Public procurement to be launched in Q (guarantee products for social enterprises, social housing construction cooperatives, municipal rental housing projects, self-help housing construction projects)

7. SZRF – JEREMIE Holding Fund in SK
Total size: EUR 107m (increased to EUR 140m in 2016)
Total absorption (by the end of the period ): EUR 107m
Manager: EIF (2009 – 2015); SZRB Asset Management ( )
Objective: Improving SMEs’ access to finance and stimulating their growth and expansion
Supported Financial Instruments: First Loss Portfolio Guarantee (FLPG); Portfolio Risk Sharing Loan (PRSL); Equity (Venture Capital)
Central Europe fund of funds – CEFoF
Total allocation: EUR 10m (EUR 3,33m from MoF and EUR 6,67m from SZRF)
CEFoF Funding Agreement between MoF and SZRB AM:
CEFoF Management Agreement:
The Slovak Government created the Slovak Investment Holding: a fund of funds for the implementation of the ESIF in the programming period via Financial Instruments
Various benefits of implementing ESIF via Financial Instruments instead of via grants exist; e.g. FIs are repayable and allow leveraging from the International Financial Institutions and qualified private investor money
Following the government resolution, 3% of each Operational Programme will be allocated to Slovak Investment Holding which represents approximately 552 million (ESIF + National co-financing) to be used for financial instruments
The manager of the SIH, SZRB Asset Management, is a 100% subsidiary of Slovak Guarantee and Development Bank (SZRB). SZRB is operating on a commercial basis and is fully owned by the Ministry of Finance
SZRB AM will manage the fund of funds and propose the investment strategy which will then be approved by the Supervisory Board of the Slovak Investment Holding where all Managing Authorities of the respective Operational Programmes are represented

8. SZRF Financial Intermediaries
FLPG (Guarantee Instrument)
PRSL (Loan instrument)
Venture Capital (Equity)

9. Investment plan for Europe – implementation in SK
SZRB Asset Management operates as the local entry and advisory point for Investment Plan for Europe implementation in Slovakia
SZRB Asset Management cooperates with the EIB, European Investment Advisory Hub (signed MoU in Feb 2016), European Investment Project Portal, Structural Reform Support Services (European Commission)
Main activities:
Construction of pipeline of investment projects and of capacity for investment advisory services at SZRB Asset Management – cooperation with EIAH and SRSS
Analysing market potential for establishing smart cities investment platform
Main objectives:
Centralisation of investment advisory know-how in preparing/structuring investment projects
Increased use of EFSI and/or ESIF financial instruments in Slovakia

10. Further investment opportunities in Slovakia
SZRB Asset Management recongizes in relation to its core activities also other investment opportunities in Slovakia which could attract foreign investors, and is ready to prepare solutions for them
SZRB Asset Management established its fully owned subsidiary Slovak Asset Management (SAM) to implement non-ESIF investments in Slovakia
SAM applied for Licence of Asset Manager of Alternative Investment Funds from the National Bank of Slovakia
After obtaining the Licence, SAM will be entitled to establish, and manage alternative investment funds in any country of the European Union

11. Chief Investment Officer
Peter Dittrich
Chief Investment Officer
Any use of this material without specific permission of SZRB Asset Management is strictly prohibited.