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The European Investment Bank (EIB) has signed a EUR 25 million agreement for RDI activities with Pharmathen S.A. This is the first EIB transaction in Greece 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 midcap and SME companies in the European Union.

The loan to Pharmathen, one of Greece’s main generic drug manufacturers, will finance the development and production of high-quality pharmaceutical products geared mainly to export markets. The RDI activities will be managed out of Pharmathen’s headquarters in Athens. The project is important for Pharmathen, as it will allow the company to maintain its competitive edge in international markets, by accelerating its RDI programmes. Additionally, it will strengthen the cooperation between Pharmathen and European and local suppliers, universities and research institutes, and will contribute to increasing the competitiveness and value added of Greek manufacturing goods.

Werner Hoyer, EIB President declared: “We are pleased to be partnering with Pharmathen 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 quality of life. The operation showcases the direct intervention of the EIB and its role in supporting key R&D activities. We are aiming to pave the way and demonstrate 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 Greece as well as Europe”.

Background information:

European Investment Bank

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.

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.