The Dutch Minister for Economic Affairs Mrs Annemarie Jorritsma and EIB Vice-President Rudolf de Korte have signed today in The Hague a letter of intent, providing for EIB participation in the financing of Twinning Growth Fund. This fund is dedicated to channelling venture capital to newly founded ICT (information and communication technology) companies entering an early growth phase. Twinning is an initiative of the Ministry for Economic Affairs to stimulate entrepreneurship in the Dutch ICT sector by providing start-ups in this sector with housing in Twinning Centres; financing by Twinning's Seed Fund and Growth Fund; coaching and other support from the Twinning Network.
The EIB is involved in the European Union's recent initiatives to create a European economy based on innovation and knowledge. Developing the ICT sector is a key element in European policy. The Bank is already helping, in partnership with venture capital funds, to make available equity and quasi-equity for innovative and growth-oriented small and medium-sized enterprises (SMEs). Financial participation in the Twinning Growth Fund, up to EUR 11.5 million)(1) and subject to satisfactory outcome of the due diligence process under way, could be part of the EIB's "Innovation 2000 Initiative", to be set up as its contribution to the Lisbon European Council's measures to foster the innovation and knowledge economy in Europe.
EIB Vice-President Rudolf de Korte stressed the importance of the Lisbon European Council's measures. "In fact, Europe is on the brink of a new era, taking into account the rapid development of the New Economy in the United States and elsewhere in the world. The EIB can help in implementing the European Union's measures since the Bank has long experience of financing SMEs, most recently through its "SME Window" providing venture capital instruments benefiting high-technology and job-creating SMEs. Its "Innovation 2000 Initiative" will mobilise another one billion euro for venture capital operations, in addition to the first one billion made available since 1997. Furthermore, a dedicated lending programme of an estimated EUR 12 to 15 billion over the next three years will further human capital investment; SMEs and entrepreneurship; research and development; IT and telecommunications networks, and increased innovation. It could support total investment of some EUR 40 billion, when implemented in partnership with other financial institutions. The Bank will cooperate closely with the European Commission and the EU Member States, the EIB's shareholders. Its financial participation in Twinning, the first incubator for ICT start-ups in Europe, would be an excellent example of such cooperation".
Over the past five years (1995-1999), total EIB loan signatures in the Netherlands amounted to EUR 2.2 billion, of which some EUR 600 million in the form of global loan finance. Individual loans went among others towards the construction of household incineration plants in Nijmegen, Alkmaar, and Moerdijk; improvements to the air traffic system; a new motorway tunnel in the Province of Noord-Holland; upgrading of water supply systems in the Provinces of Noord-Holland and Limburg; an urban development project in Amsterdam; commissioning of a mobile telephony network; construction of a factory near Zwolle to produce diesel engines; and strengthening of river dykes in the Province of Gelderland.
As the European Union's financing institution, the EIB finances capital investment contributing towards one or more of the following EU objectives: regional development; transport, telecommunications and Trans-European Networks (TENs); secure energy supplies; improvements to the natural and urban environment; development of infrastructure in the health and education sectors; enhanced competitiveness and integration in European industry; investment by SMEs; venture capital finance. Outside the EU, the Bank participates in implementing the EU's development policy in accordance with the terms of the various agreements which the Union has concluded with some 130 countries. Owned by the EU Member States, the EIB raises its funds on capital markets (AAA issuer).
(1) EUR 1 = 2.20 NLG; 0.621700 GBP.