Despite unresolved economic issues and challenging investment climate, Ukraine’s risk-reward profile continues to attract foreign investors

Europe Virgin Fund L.P., a private equity fund sponsored by Dragon Capital, has completed formation of a 50/50 joint venture with Ucrafarma S.A., a Spanish pharmaceutical company.

The Ukrainian Exchange (UX), the largest stock exchange in the country, has named Dragon Capital the Stock Market Leader and the Best Online Broker in 2012.

European Bank for Reconstruction and Development (EBRD) will provide US$70 million loan to Coal Energy, the private producer of thermal and coking coal in Ukraine. Investment bank Dragon Capital acted as a sole financial advisor for Coal Energy in this transaction.

November and the first half of December marked another eventful period for Ukraine but have so far brought little clarity as regards post-election economic policies. Parliament approved the 2013 budget bill, suggesting fiscal consolidation on the general government level of 0.4% of GDP, to 3.3% of GDP. It remains unclear, however, whether key budget parameters will satisfy the IMF.

Dragon Capital’s sales and research teams ranked first in the annual Cbonds Awards for “Best Equity Sales” and “Best Equity Research”

Dragon Capital and Dragon Asset Management were listed among Ukraine’s most transparent companies in a ranking of professional members of the stock market conducted by FundMarket portal.

Dragon Capital organized its first agricultural investor trip, including site visits of five leading domestic agribusiness Astarta Holding, IMC, Kernel Holding, Ovostar Union and Milkiland.

JSC Nova Linia CEO Yevhen Baranov: “Having examined the global experiences of DIY-retail chains we came to the conclusion that the tempo of modern living makes people less interested in the DIY-format as they don’t have enough time to make their house a real dream on a piecemeal basis. That is why Nova Linia is the first company in Ukraine to offer an absolutely new retail format - “Home Improvement” - providing interior ideas in line with the latest trends, which we have brought to life in our hypermarket.”

Mr. Alex Munteanu (Dragon Capital, Ukraine) and Mr. Halil Kuuluk (Intekno, Turkey) were appointed Chairmen of the Business Advisory Council, a position formerly held by Mr. Rahmi Koc (Koc Holding, Turkey) and Mr. Muhtar Kent (Chairman of the Board and CEO of the Coca Cola Company, USA).