The European Investment Bank (EIB) has signed a EUR 7.5m agreement with the Spanish automotive supplier Maier S. Coop. for its RDI activities in the field of automotive components. This is the first EIB transaction in Spain supported by “InnovFin – EU Finance for Innovators” under its MidCap Growth Finance instrument, with the financial backing of the European Union under Horizon 2020 Financial Instruments. “InnovFin MidCap Growth Finance” is specifically dedicated to improving access to risk finance for research and innovation projects of midcaps and SMEs in the European Union.

The EIB loan to Maier, a cooperative group member of the Spanish Mondragón Corporación Corporativa, will finance the development of new technologies for vehicle components that will result in faster, more efficient, as well as more environmentally friendly production in order to address OEMs’ specific needs in terms of vehicles’ fuel efficiency and affordable higher quality products. The investment specifically includes the development and production deployment of new finishing technologies for a further evolution into the premium vehicle segment and upcoming alternative vehicles (e.g. electric vehicles); further technologies for exterior and interior trim components under environmentally friendly manufacturing processes; and innovative finishes for affordable light weighting components for low-cost vehicles.

The RDI investments will be carried out at the Maier’ centres in Spain, the UK and Czech Republic and will be implemented until 2017. The EIB loan will support the company’s strategy to remain at the forefront of innovation in its specific automotive components segment in Europe and abroad.

This long-term loan reflects the EIB’s commitment to supporting RDI and promoting the development of midcaps companies. By financing these RDI investments, the EIB will help to underpin the company’s sustainable growth and employment.

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Maier is a leading European player in the automotive components sector with a strong focus on design innovation and relatively high RDI intensity within the segment of exterior and interior vehicle decoration and finishing parts. Maier has production sites in Spain, UK, Czech Republic, Italy and India, with additional sales offices in Germany and France. In addition, Maier has a Technology Center employing over 100 engineers allowing for a fast and broad innovative commercial proposal to its customers. With a workforce of over 1,700 employees, in 2013 Maier achieved revenues of EUR 222m.

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-sized 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 their 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 MidCap Growth Finance offers long-term senior, subordinated or mezzanine loans from EUR 7.5 to 25m for innovative larger midcaps (up to 3000 employees), but also SMEs and small midcaps, with the aim of financing up to 50% of these companies’ investment programmes in R&I.