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Innovation Finance via
European Fund for Strategic Investments (EFSI) and InnovFin Science
June 2019
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EIB Group Financing: ~EUR 100bn
European Fund for Strategic Investments
EU Guarantee EUR 26bn EIB contribution EUR 7.5bn*
Infrastructure and Innovation Window
EUR 23bn
SME Window
EUR 10.5bn
Deployed by EIF
Final investments: EUR 500bn
EFSI - European Fund for Strategic Investments EUR 33.5bn*
Deployed by EIB
* increase of EIB contribution and allocation to windows still subject to approval
by EIB Board of Directors.
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EFSI selection criteria
Be commercially sound, economically and technically viable
Within EU28 countries or cross-border operations
Contribute to EU objectives, sustainable growth & employment
Be mature enough to be bankable
Underpin EFSI objectives (emphasis on Additionality)
Match eligible sectors
Projects need to
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Intermediated lending - new financing through local partner
bank
Risk sharing - new financing through local partner bank and
NPBs
Portfolio risk sharing with financial partners (ABS)
InnovFin/ COSME Guarantees
Climate and infrastructure fund investment
Co-investments with eligible funds
Venture capital, SME and MidCap fund investment
Technology transfer/Business
angel fund investment
Direct MidCap Growth Finance/Quasi -Equity
EIF via local partners EIB via local partners Direct EIB financing
Loans for investmentand RDI
Start-ups Large businesses3000+ employees
Small companies< 250 employees
MidCaps< 3000 employees
Lower riskfinancing
Higher riskfinancing
EIB Group product range
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EFSI – State of play
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EFSI project approval life cycle
All EFSI operations have to follow EIB’s standard life cycle (IIW)
• The client contacts EIB offices - standard EIB due diligence, EIB project lead.
• Approval process - EIB Management Committee + EIB Board.
• EFSI criteria in terms of additionality and eligibility - EFSI Investment Committee.
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EIB - Innovation & Special Activities
856 m
2.4
2.7
5.4
7.7
8.6
15.6
13.3
16.1
13.5
13.9
13.6
104
108
123
150
237
213
- 50 100 150 200 250
- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000
2013
2014
2015
2016
2017
2018
Total no. Projects
Total Lending volume (m EUR)
Total Innovation
Total Special Activities
Total number projs
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RDI Funding sources
RI life cycle, including project’s and promotor’s
financial sustainability, needs to be carefully
analyzed at the stage of project preparation
Grants – ERDF, Horizon 2020, National grants
Financial Instruments Debt
Equity
Guarantee instruments
Financial Instruments under EFSI and InnovFin
provided via EIG Group shall be repaid. Therefore,
the projects have to be technically and financially
viable
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InnovFin Science• InnovFin Science supports R&I investments by research
institutes, universities and research organisations (public or private);
• Financing of buildings and other infrastructure directly related to R&I activity are also eligible;
• The product is deployed directly by the EIB in the form of debt or equity-type financing from EUR 25 million;
• All of this initiative's instruments are driven by existing demand, with no prior allocations between sectors, countries or regions;
• Firms and other entities located in EU Member States and Horizon 2020 Associated Countries are eligible to become final beneficiaries;
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InnovFin Science
• Full name: “Research Institutes, Universities, Research and Technology Organisations Facility”
• Type of operation: DIRECT only(1)
• Riskiness: Non-Special Activities and Special Activities
• Geography: Full scope but no operation with Higher Risk Factor
• Format: Debt and Equity type
• EU contribution to FLP: 6.65%(2) of signed amount (both debt and equity-type)
• Eligibility:
• Recipient: Research institute, university or research organization
• Operation: R&I Activities, R&I Infrastructure, EUREKA, ERA
• Appraisal process: Normal EIB due diligence – no checklist with the EC
• Typical portfolio allocation for risk-sharing purposes: Debt-type
• Expected geographical focus: All eligible geographiesNote: (1) The EC has confirmed that an operation where a central government financing entity (such as the Ministry of Finance) borrows to
provide finance to final beneficiaries is considered as a Direct Operation in the spirit of the Delegation Agreement and hence eligible under
InnovFin Science
(2) Nil EU contribution for operations with Member States risk (A0 Loan Grading which requires nil capital allocation)
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InnovFin Spain: Support for science
• Loan of EUR 1.2 billion to support science in Spain
• Managed by the State Research Agency
• Support the research projects of Public ResearchOrganisations and Unique Scientific and TechnicalInfrastructures
• Invest in several areas of science and technology,closely linked with Spanish industry => promote thedevelopment of patents and new areas of research.
• The EIB loan will mobilise total investment of EUR 2.5bnand will have a positive effect on attracting and retainingresearch talent in Spain.
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European Investment Advisory Hub
A tool to strengthen Europe's investment and business environment
A single access point to a 360 degree offer of advisory and technical assistance services
A joint initiative by the European Commission and the European Investment Bank
A cooperation platform to leverage, exchange and disseminate expertise
An instrument to assess and address unmet needs for advisory support
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Thank you!
For further questions: [email protected]
mailto:[email protected]