European Investment Bank financing helps ensure that firms like Jennewein can grow in Europe, rather than taking their innovations to the United States for support and development.
Link to source
Data sheet
Other links
Summary sheet
Release date
31 July 2018
Status
Reference
Signed | 20/07/2018
20180330
Project name
Promoter - financial intermediary
JENNEWEIN (EGFF)
JENNEWEIN BIOTECHNOLOGIE GMBH
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 15 million
EUR 40 million
Description
Objectives
Jennewein is a highly innovative German biotechnology food company focused on novel production processes for the synthesis of human milk oligosaccharides (functional nutritive sugars) for a wide range of applications, including nutritional, pharmaceutical and cosmetic products.
The project will cover research and development (R&D) costs, both operational expenditure (OPEX) and capital expenditure (CAPEX) related to the up-scaling of the production of the human milk oligosaccharides, clinical trials for the new products and related R&D activities.
Environmental aspects
Procurement
The project mainly concerns investments in R&D that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an environmental impact assessment (EIA) under the Directive 2011/92/EU. Full environmental details will be verified during the appraisal.
The promoter is a private company, not operating in the utilities sector and does not have the status of a contracting authority; thus the project is not subject to the EU directives on procurement.
Related documents
Link to source
Summary sheet
Other links
Data sheet
Related press
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).
Documents
Environmental and Social Data Sheet (ESDS) - JENNEWEIN (EGFF)
Publication Date
15 Aug 2018
Document language
Main Topic
Lending
Document Number
84778160
Document Focus
Environmental Information
Document Type
Project Number
20180330
Sector(s)
Regions
Countries
Publicly available
Download now
scoreboard - EUROPEAN GROWTH FINANCE FACILITY
Publication Date
13 Sep 2019
Document Language
English
Main Topic
lending
Document Number
122912044
Document Focus
EFSI legal requirements
Document Type
Scoreboard
Project Number
20180667
Last update
19 Aug 2020
Sector(s)
Services
Countries
Bulgaria, Kenya, Ghana, Mexico, Philippines
Publicly available
Download now
Link to source
Other links
News & Stories
Link to source
Other links
Inside the project
How and Why
A breakthrough technology
Why
- Multinationals had tried to figure out how to manufacture oligosaccharides at a price low enough to make mass production feasible. Jennewein actually did it
- To build a R&D centre to expand human milk oligosaccharides product portfolio and increase production capacity
- Fill a market gap as commercial banks are reluctant to invest in an early-stage company in a new and innovative market.
How
- Financing in the form of venture debt with equity-like remuneration
- Because it’s not an actual equity investment, Jennewein’s founders and early investors retain their stake in the company, instead of diluting it.
Sectors & Countries
Story
Next stage for synthesised human breast milk sugar
Human milk is important to babies because it contains complex sugars called human milk oligosaccharides. This natural sugar source reduces the risk of infectious diseases in children by up to 50% and promotes the growth of organs, including the brain. Human breast milk is unique in its high level of oligosaccharides.
That’s also an impulse for this next stage in Jennewein’s progress. The company is partnering with Chr. Hansen, a larger company with industrial-level operations, so that it can produce sufficient quantities of breast milk to attract contracts to supply the big Far Eastern market. Hansen, a global bioscience Danish company acquired all shares in Jennewein. It plans to invest €200 million by 2025 in new production facilities.
Jennewein is one of the first companies to benefit from the European Investment Bank’s venture debt financial instruments, loans designed to support growing companies without putting pressure on their cash flows.
Venture debt, which is also called quasi-equity, allowed the EU bank to take on the risk of financing Jennewein’s developing technology with loans in 2015 and 2018. The instrument has proved how successful it can be, as Jennewein moves to the next stage of its industrial development with its takeover by the larger Danish company.
This is an excellent example of the type of firm we can advance in Europe, and the key is providing the right financing ecosystem.
Financing health and innovation
Healthcare plays an important role in the EU’s economy, accounting for 8% of the total workforce and for 10% of its GDP. As the EU bank, we support healthcare projects that aim to ensure universal access to high-quality, safe and affordable services.
The life sciences are a vital economic sector with innovation at their very core. Continued development of the industry is crucial to ensure the health and well-being of European Union citizens, whilst stimulating research and development and contributing to the EU’s global competitiveness.
Whether it’s for our health, our children or our elderly, in future care will be based on innovative models. Meet the people already putting those new ideas into practice.
Related media
Healthy sugar for baby formula
Jennewein healthy sugars make baby formula closer to mother’s milk
Venture debt keeps the vultures away
The EIB Venture Debt Summit showcases an innovative financial tool that helps start-ups grow without pushing their founders aside
Links
Related projects and stories
Flowing forward
Riga water company modernises its water infrastructure, improving quality of life and paving the way for sustainable progress
‘We need to do more’
The Adaptation Days conference delivered a call for better regulation, a higher profile for adaptation in corporate climate plans, and more awareness of the financial impact of extreme weather events
EIB Returns Painting to Rightful Heirs
Following provenance research, the European Investment Bank (EIB) has returned a Flemish Old Master painting by Frans de Momper, which had been spoliated during World War II, to its rightful owners.
General enquiries and comments
The EIB is committed to open communication and encourages constructive stakeholder input regarding its activities.
Enquiries and comments concerning the EIB’s involvement in a project or the financing facilities, activities, organisation and objectives of the EIB, can be sent to the EIB Infodesk.
Alternatively, the EIB can be contacted through its external offices.
Queries regarding details of a specific project, in particular when it is under appraisal by the EIB, should preferably be addressed directly to project promoters.
Media enquiries
Media-related enquiries can be addressed to the EIB Press Office. Please also visit our Media information section.
Complaints mechanism
Any complaint regarding alleged maladministration can be lodged via the EIB Complaints Mechanism. The European Ombudsman acts as an independent external accountability mechanism of the EIB.
Zero tolerance against fraud and corruption
The EIB has a zero tolerance policy on fraud or corruption. To report allegations of fraud and corruption relating to EIB-financed projects, please contact the Fraud and Investigation division. All complaints will be treated as strictly confidential and handled in line with the EIB investigation procedures and the Anti-Fraud Policy.
Related publications