InnovFin – EU Finance for Innovators
The European Commission and the European Investment Bank Group (EIB) in 2014 launched a new generation of EU financial instruments and advisory services to help innovative firms access finance more easily.Over the seven years, it is expected that the "InnovFin – EU Finance for Innovators" products will make available more than €24 billion of financing for research and innovation (R&I) by small, medium and large companies and the promoters of research infrastructures. This finance is expected to support up to €48 billion of final R&I investments.
"InnovFin – EU Finance for Innovators" consist of a range of tailored products – from guarantees for intermediaries that lend to SMEs to direct loans to enterprises - helping support the smallest to the largest research and innovation projects in the EU and countries associated to Horizon 2020.
Background on InnovFin products
InnovFin Large Projects aims to improve access to risk finance for R&I projects emanating from large firms and medium and large midcaps; universities and research institutes; R&I infrastructures (including innovation-enabling infrastructures); public-private partnerships; and special-purpose vehicles or projects (including those promoting first-of-a-kind, commercial-scale industrial demonstration projects). Loans from €7.5 million to €300 million will be delivered directly by the European Investment Bank.
InnovFin MidCap Growth Finance offers senior and subordinated loans or guarantees (including mezzanine and quasi equity financing), in order to improve access to finance mainly for innovative larger midcaps (up to 3,000 employees), but also SMEs and small midcaps. Loans from €7.5 million to €25 million will be delivered directly by the European Investment Bank to eligible beneficiaries in EU Member States and Associated Countries..
InnovFin MidCap Guarantee offers guarantees or contingent loans of between €7.5 million and €25 million, in order to improve access to finance for innovative larger midcaps (up to 3000 employees) in particular. This facility is implemented by the European Investment Bank, and is to be delivered through financial intermediaries – banks and financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries will be guaranteed against a portion of their potential losses by the EIB, which will also offer counter-guarantees to guarantee institutions.
InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million, in order to improve access to loan finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). This facility is implemented by the European Investment Fund, and will be rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries will be guaranteed by the EIF against a proportion of their losses incurred on the debt financing covered under the facility.
InnovFin Advisory services, provided by EIB on the basis of up to €28 million from the Horizon 2020 budget, aim to improve the 'bankability' and investment-readiness of large projects that need substantial, long-term investments. It will also provide advice to improve the conditions for access to risk finance for R&I. The main clients foreseen are promoters of large R&I projects that meet Horizon 2020's Societal Challenges. The advisory services are expected to accelerate the development of projects with an investment value of some €20 billion.
Other press contacts:
EIB: Helen Kavvadia, Tel.: +352 4379 84486
EIF: Susanne Gutjahr, +352 426 688 487
- Posted on: 26.05.2016
- Created by: Zana Bogunovic
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