First EIB financing under InnovFin in Portugal: EUR 14 million for Novabase solutions RDI
- Release date: 19 December 2014
- Reference: 2014-300-EN
The European Investment Bank (EIB) has granted Novabase a EUR 14 million loan for financing its solutions RDI investments. This is the first EIB transaction in Portugal supported by “InnovFin – EU Finance for Innovators”, 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 companies in the European Union.
Novabase is one of the leading innovators in Portugal that was highlighted in "The 2014 EU Industrial R&D Investment Scoreboard" report, recently published by the European Commission, as part of the top 100 companies in Europe, number one in the sector and top 6 in all sectors in Portugal investing in R&D. The loan will finance the development of innovative software applications and products across different sectors. Examples include the development of data management, Software as a Service (SaaS), integrated management, and various collaborative solutions for the company’s key segments including telecommunications, financial sector, utilities, transportation, healthcare and the public sector. The EIB loan will support the company’s strategy to remain in the forefront of solutions and software application innovation in Europe.
The EIB loan will provide long-term financing to the company, thus allowing the group to carry out its RDI and other investments related to the internationalisation and growth strategy. It will also allow for the hiring of talented and young people in the Portuguese market. The investments financed will be carried out at the company’s facilities in Portugal over the period 2014-2016.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.
Over its 25-year history, Novabase has become the Portuguese leader in IT. It has been listed on the Euronext Lisbon stock exchange since 2000. Its turnover in 2013 was €216,8 million, 34% from outside of Portugal, with business in more than 40 countries and 9 different time zones.
Novabase has offices in Spain, Middle East, Mozambique, Angola, United Kingdom and Portugal. It boasts more than 2,300 talented and dedicated employees of 17 different nationalities. In the past 3 years, it has invested more than €22 million in research & development for specialized products and services in the Telecoms & Media, Financial Services, Government, Healthcare & Transportation and Energy & Utilities. Its current business lines are Business Solutions, Infrastructures & Managed Services and Venture Capital.
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.