The European Investment Bank has signed a guarantee agreement with Dutch bank NIBC in support of loans of up to EUR 500 million to innovative mid-sized enterprises. The operation is supported by ‘InnovFin – EU Finance for Innovators’ MidCap Guarantee with the financial backing of the European Union under Horizon 2020 Financial Instruments”
With the EIB bringing a guarantee of up to EUR 250 million, NIBC will be able to provide finance to innovative companies for a total of up to EUR 500 million. The operation is specifically meant for a portfolio of innovative and fast growing Mid-Caps in various sectors, including Telecom, Media, Technology & Services, Industries & Manufacturing, Food, Agriculture, Retail & Health and Infrastructures & Renewables.
“Access to finance for medium-sized companies remains an issue in the Netherlands.” says Vice-President Pim van Ballekom of the EIB. “Therefore we are extremely glad about this operation with NIBC, which will be widening the possibilities for mid-sized Dutch companies to get the tools they need to expand their business and grow as companies. Europe is supporting innovation across the board and this is a further example of how we seek solutions to get the financing to the right places.”
“Ever since the start of NIBC, we are primarily focusing on the mid-sized companies that value our entrepreneurial and inventive approach. It is encapsulated in our DNA to support this driving force behind the Dutch economy with advice, bespoke financing and capital market solutions that are tailored to the specific needs of our clients. This guarantee agreement with the European Investment Bank will boost their access to funds and help them grow their innovative businesses. ” adds, Herman Dijkhuizen, CFO of NIBC.
This financial instrument is based on risk sharing and aims to foster growth and competitiveness in Europe. It enables the EIB to provide a 50 percent credit risk guarantee to the intermediary financial institution, NIBC.
European Commission First Vice-President Frans Timmermans said: "Today's agreement demonstrates that InnovFin is one of the European tools that makes new financing solutions available for Dutch businesses. The EU Finance extended today gives them the opportunity to innovate, grow and create jobs. This type of support is a central pillar of our strategy to boost investment and drive growth across Europe."
The European Investment Bank 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. The Netherlands is one of the 28 shareholders of the EIB, owning a 4,6% stake in this European institution. In 2016, the EIB made available a record volume of over EUR 2.56 billion in preferable financing to Dutch projects.
InnovFin MidCap Guarantee provides guarantees and counter-guarantees on debt financing of up to EUR 50m, in order to improve access to finance for innovative midcaps (up to 3000 employees) which are not eligible under the InnovFin SME Guarantee. This facility is implemented by the EIB, and will be rolled out through financial intermediaries – banks, other financial institutions. Under InnovFin MidCap Guarantee, financial intermediaries will be guaranteed against a portion of their potential losses by the EIB.
Founded in 1945, NIBC is a mid-sized Dutch bank that offers corporate banking and consumer banking activities. The corporate banking activities cover advice, financing and co-investment provided primarily to medium-sized companies in the Benelux, Germany and the United Kingdom. The consumer banking activities include activities relating to residential mortgages and online saving products via NIBC Direct in the Netherlands, Germany and Belgium.
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