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Growth finance - features

Growth finance - features

 

What is growth finance?

Loans (including quasi-equity) to medium-sized companies (Midcaps) or in some cases small and medium sized enterprises (SMEs) in need of capital to expand their operations, located in the EU or in select neighbouring countries. Depending on risk and other features, this product may be supported by the European Fund for Strategic Investments (EFSI) or other mandates managed by the EIB.



Who is eligible?

  • Companies with less than 3 000 full-time employees at the time of application
  • Companies who have raised already one or more rounds of financing with financial or strategic investors
  • Companies able to demonstrate sound corporate governance, viable business plans, and sustainable capital structures


Key benefits of EIB growth finance

  • Long tenors, flexible structures, ability to absorb equity risk without dilution
  • Quality stamp and positive signalling effect, catalysing additional financing from other sources
  • Long-term perspective, with a view to supporting EU public policy objectives
  • Improved return on equity for existing investors


Indicative features

Instrument

corporate term loans

Counterparty

European or other acceptable legal entities

Purpose

to partly finance the "project"

Project

the investment budget related to eligible expenditures over a period of 3 years (up to 5 years on a case-by-case basis). As part of the due diligence process, the EIB reviews budgeted investments in order to define the project and identify those items that are eligible for EIB support

Eligibility

Tangible and intangible investments and expenditures (example purchase or renovation of assets, working capital, etc.) which can be identified in terms of location, design and benefits, and which are undertaken over a period of up to 3 years

Loan size

min approximately EUR 7.5m; amount may not exceed 50% of the project costs

Example: if a company required approximately EUR 50m for capital expenditure and working capital purposes over the next 3 years; accordingly the EIB loan could typically reach max of EUR 25m (50%).

Tenor

maturity is typically up to 5 years from disbursement with a drawdown commitment period of up to 2 years. Disbursement of the loan is not directly linked to the investment budget/project costs

Rank

senior, subordinated, contingent or participating loans

Covenants & security

secured or unsecured; decided on a case-by-case basis

Pricing

reflecting the level of risk assumed by the operation. Pricing can be achieved through cash or capitalised interest, profit participation, equity kickers or alternative participating mechanisms

How to apply

  • European Investment Bank

98-100, boulevard Konrad Adenauer
L-2950 Luxembourg
Or contact an EIB local office in Europe

  • Call us

+352 4379-22000

  • Email us

info@eib.org

  • Contact EIB Infodesk

contact form




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