Further EIB support under InnovFin in Turkey: EUR 35 million for TÜRK TRAKTÖR RDI activities
- Release date: 21 December 2015
- Reference: 2015-314-EN
The European Investment Bank (EIB) signed a EUR 35 million agreement for RDI activities with Türk Traktör ve Ziraat Makineleri A.Ş. (Türk Traktör). This is the second EIB transaction in Turkey supported by ‘InnovFin – EU Finance for Innovators’, with the financial backing of the European Union under Horizon 2020 Financial Instruments. “InnovFin Large Projects” is specifically dedicated to improving access to risk finance for research and innovation projects in the European Union.
The loan to Türk Traktör, one of Turkey’s main tractor manufacturers, will finance the development and implementation of technologies designed to enhance the fuel efficiency, improved performance and reliability, as well as the development of new features and products. The RDI activities will take place mainly in the Türk Traktör facilities in Gazi, near Ankara, over the period 2015-2018. The project is strategic for Türk Traktör, as it will help further increase its technology and organisational capacities, thus making it possible to undertake a wider range of R&D projects within the CNH Industrial Group, specialising in trucks, construction and agricultural machinery, industrial and marine powertrains. Additionally, it will strengthen the cooperation between Türk Traktör and European and local suppliers, universities and research institutes, and will contribute to increased competitiveness and value added of Turkish manufacturing goods.
Pim van Ballekom, Vice-President of the EIB declared: “We are pleased to be partnering with Türk Traktör in this breakthrough operation. 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 improve the quality of life and the environment. The operation showcases the direct intervention of the EIB and its role in supporting key RDI activities. With this second showcase RDI financing in Turkey, we are demonstrating that innovative financial instruments such as ‘InnovFin – EU Finance for Innovators’ can make a difference in boosting research and innovation; and this is of the utmost importance for the future of Europe”.
The European Investment Bank (EIB) supports smart growth in Turkey through three different channels, including finance for academic research undertaken in different leading universities, in co-operation with the banking sector to support research and innovation efforts of SME, as well as direct finance of RDI of larger companies.
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.
Background on InnovFin financial products
Under Horizon 2020, the 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 in 2014 to help innovative firms access finance more easily. Until 2020, "InnovFin – EU Finance for Innovators" offers 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.
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.
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.