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The European Investment Bank (EIB) is lending EUR 100 million towards the Bracco Group’s investment in research and development (R&D). The operation was signed today in Rome by EIB Vice-President Dario Scannapieco and Bracco Group CEO Diana Bracco.

The purpose of the EIB’s line of credit, which has a term of seven years, is to support the Bracco Group’s research activity in its core business of contrast agents for diagnostic imaging. Contrast agents are pharmaceutical products that enhance the visibility of organs and bodily functions using various technologies (X-rays, computed tomography, magnetic resonance, ultrasound) and are employed in high profile medical procedures to diagnose and treat important pathologies.

“Promoting research is one of the EIB’s key activities across all productive sectors. We are particularly proud of this operation as it enables the EU bank to support the work of scientists whose concrete applications serve to improve the instruments that doctors can use to diagnose and cure often serious illnesses”, remarked Mr Scannapieco.

“This financing is very important to us”, stated Diana Bracco, “and it recognises the quality of our company’s research project pipeline. Each year, Bracco invests around 10% of turnover in R&D activities, confirming our strong commitment to innovation and the continuing improvement of what we offer the scientific community and patients”.

This operation is supported by ‘InnovFin – EU Finance for Innovators’ large projects, with the financial backing of the European Union under Horizon 2020 Financial Instruments”.

Background information

EIB

The European Investment Bank supports the European Union’s strategic and policy objectives by providing long-term loans for economically viable projects. The EIB’s shareholders are the EU’s 28 Member States. Italy, together with France, Germany and United Kingdom, is one of the four main shareholders (with each holding 16.2% of the capital).

The Bracco Group

This integrated multinational group has been operating in the healthcare sector since 1927. Overall, it has some 3 300 employees and a consolidated turnover of nearly EUR 1.2 billion, of which around 75% on foreign markets. The Group is a leader worldwide in its core business of diagnostic imaging, providing contrast agents and advanced medical devices for key diagnostic methods including X-ray imaging, computed tomography, magnetic resonance, ultrasound and nuclear medicine. The Group operates in over 100 countries through subsidiaries, joint ventures, licensing and distribution agreements.

InnovFin financial products

Under Horizon 2020, the new EU research programme for 2014-20, the European Commission and the European Investment Bank Group (EIB and EIF) have launched a new generation of financial instruments and advisory services to help innovative firms access finance more easily. Over the next seven years, "InnovFin – EU Finance for Innovators" will offer a range of tailored products which will make available more than EUR 24bn of financing support 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 EUR 48bn of final R&I investments.

InnovFin builds on the success of the Risk-Sharing Finance Facility developed under the seventh EU framework programme for research and technological development (FP7), which financed 114 R&I projects to the tune of EUR 11.3bn and in addition provided loan guarantees worth over EUR 1.4bn.

Backed by funds set aside under Horizon 2020 and by the EIB Group, InnovFin financial products support R&I activities, which by nature are riskier and harder to assess than traditional investments, and therefore often face difficulties in accessing finance. All are demand-driven instruments, with no prior allocations between sectors, countries or regions. Firms and other entities located in EU Member States and Horizon 2020 Associated Countries will be eligible as final beneficiaries. These debt instruments will be complemented in the near future by a suite of equity instruments managed by the EIF.

InnovFin Large Projects aims to improve access to risk finance for R&I projects emanating from larger firms, universities and public research organisations, 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 and guarantees from EUR 25m to EUR 300m will be delivered directly by the EIB.