LATVIAN GUARANTEE AGENCY We

are working, to see more

successful enterprises in Latvia...We are

a reliable partner,where a lack of funding hampers implementation of business ideas...

Acquisition of public funding

* Committed liabilities

 

Public funding,

MEUR

Acquisition on August 30, 2013

Absorption on December, 2015

MEUR % MEUR %

2.2.1.1. activity "Holding fund for the investment in guarantee, high-risk loans, and venture capital fund and other financial instruments"

72.8 20.6 28% 72.8 100%

BALTCAP RISK CAPITAL 20 9.8 49%

72.8 100%

IMPRIMATUR SEED AND START-UP CAPITAL

10.8 3.3 31%

FUNDED RISK SHARING 7.8 7.5 96%

FLYCAP, EXPANSION CAPITAL, ZGI CAPITAL

30 0 0

NEW MICROLOAN FUNDS 5 0 0

2.2.1.3.activity "Guarantee for development of enterprise competitiveness"

15.9 15.9 100% - -

2.2.1.4.2.sub-activity "Mezzanine investment loans for development of enterprise competitivness

18.7 1.8 10% 18.7 100%

Progress on spending

Acquisition of Public Funding/Final recipients

01.01.2011.

01.01.2012.

01.01.2013.

30.04.2013.

30.08.2013.

BALTCAP RISK CAPITAL 0.9 MEUR 2.8 MEUR 7 MEUR 8 MEUR 9.8 MEUR

2 5 8 8 10

IMPRIMATUR SEED AND START-UP CAPITAL

0.2 MEUR 0.7 MEUR 2.1 MEUR 2.5 MEUR 3.3 MEUR

3 9 13 14 16

FUNDED RISK SHARING0.6 MEUR 5.1 MEUR 7.1 MEUR 7.5 MEUR 7.5 MEUR

3 29 32 32 32FLYCAP, EXPANSION CAPITAL, ZGI CAPITAL - - - - -

NEW MICROLOAN FUNDS - - - - -

2.2.1.3.activity "Guarantee for development of enterprise competitiveness"

43 MEUR 81 MEUR 105 MEUR 110 MEUR 120 MEUR

109 171 231 251 278

2.2.1.4.2.sub-activity "Mezzanine investment loans for development of enterprise competitivness

- -

1.3 MEUR 1.5 MEUR 1.8 MEUR

3 3 4

Venture capital

Signed contracts with new risk capital funds on August 6, 2013 :

FLYCAP: focus on start-up companies with developed business model EXPANSION CAPITAL: focus on commercial production beginners ZGI CAPITAL: focus on seed and start-up capital investments

Success cases:

IMPRIMATUR: Blue Bridge Technologies: Health IT: automating medical insurance claims processing, improving patient data security and decreasing administrative costs. Invested 700 TEUR in 2011-2013 as early-stage startup capital. 5 new high-value jobs created in Latvia in computer science and international marketing .

BALTCAP: Primekss: industrial concrete flooring company. Unique, patented technology that allows to create concrete that is tougher, stronger, crack-free and ecologically friendly. Turnover has doubled from 8 MEUR to 16 MEUR in 2012, and more than 100 jobs have been created in the process.

Management cost does not exceed 3% on a yearly average in the level of financial intermediaries and <1% in the level of LGA

Mezzanine loan programme

Attracted private funding on August, 2013: 3 MEUR

On September, 2013 in the decision-making process 2 projects: IT and catering, 1.3 MEUR, and 2 projects are in pipeline;

The main planned changes to the programme:

a) exclusions from the restricted industries/ activities list;

b) mezzanine loan may be subordinated in relation to a long-term loan granted by a credit institutions or by a private investor

Direct sales of mezzanine loans to enterprises and seminars to bank project managers

Planned management cost will not exceed 2% on a yearly average during programme implementation, on August, 2013: < 1%

Guarantee programme

Attracted private funding > 200 MEUR

Export turnover covered by export credit guarantees > 70 MEUR

Defaulted guarantees: 1.2% of issued guarantee amount on August, 2013

Management cost does not exceed 2% on a yearly average during programme implementation,

Planning to close 2.2.1.3.acitvity “Guarantee for development of enterprise competitiveness” on December 31, 2013

Micro-lending funds

Status:

State aid rules approved on June 18, 2013

Procurement documentation in development – the last phase: legal advice on agreement conditions

The procurement procedure is expected to start in October, 2013

Contracts with financial intermediaries are expected to sign in December, 2013

The total micro-lending fund amount:5 MEUR, for one financial intermediary: max 1 MEUR

- Cooperation with banks («gate keepers»), meetings with management on regular basis;

- Distribution of informative material (infographics, video);

- Regional seminar programme: meetings with entrepreneurs in regions, direct transition of experience from mezzanine beneficiaries to interested parties;

- Cooperation with sector associations;

- Cooperation with partners (venture funds, NGO, TechHub, Enixus Baltija, Commercialization Reactor), using them as channels of information distribution;

- Press conference about new venture funds;

- Newsletters, social networking (twitter, Linkedin, LGA web);

- Open Days in LGA;

- Direct cooperation with media (summary of programms so far, experience stories, etc.), regular news for media about programme beneficiaries.

LGA publicity measures

Latvian Guarantee Agency, LtdZigfrīda Annas Meierovica bulvāris 14, Rīga, LV-1050, Latvija

T +371 67 216 081F +371 67 359 374

www.lga.lv

lga@lga.lv

http://twitter.com/#!/lgalv