- A EUR 80m investment guaranteed by the European Fund for Strategic Investments (EFSI)
- A fund dedicated to ‘essential’ sectors: renewable energy, sustainable agriculture and healthcare
- A long-term fund, with an expected lifetime of 15 years and a target commitment amount of EUR 400m following the subscription phase
The European Investment Bank (EIB) – the EU bank – has announced that it is investing EUR 80m in the Eiffel Essentiel fund under the Juncker Plan.
Eiffel Essentiel is a strategic investment fund designed to provide long-term support to businesses whose very purpose is to meet the most basic needs of humanity: food, health and environmental protection. Convinced that across the globe there will need to be a shift in production and consumption methods towards more sustainable models, Eiffel Investment Group has created a fund dedicated to transitions that will impact the ‘essential sectors’ of renewable energy, sustainable agriculture/agribusiness and healthcare. In targeting these key sectors for environmental transition, Eiffel is seeking to maximise its economic and social value in line with its role as an impact investor.
“As an impact investor, we are always trying to come up with new strategies that can generate as many positive externalities as possible. At Eiffel Essentiel we offer an innovative solution based on our proven expertise in the fields of sustainable energy, agriculture/agribusiness and healthcare”, said Fabrice Dumonteil, CEO of Eiffel Investment Group, a member of the EIB's ‘partners club’ established in May 2019.
Eiffel Essentiel is keen to support around 20 companies operating in these critical sectors which, having proved their economic model, need a stable shareholder to deploy their full potential.
With a lifespan of 15 years, Eiffel Essentiel is truly a long-term fund aiming to support these companies potentially over a period of more than 10 years. This key component of Eiffel Essentiel's strategy is based on the conviction that any real industrial success needs time, particularly in response to the changing models with which the targeted critical sectors are faced.
Eiffel Essentiel will acquire minority stakes alongside shareholders with controlling interests (founding families, shareholder executives, etc.), adopting an active shareholder approach and passing on the benefits of its expert knowledge of the industrial ecosystems of the three essential sectors.
“This innovative financing, which will be focused partly on the energy sector, meets one of the European Investment Bank's priority objectives – combating climate change”, stated EIB Vice-President Ambroise Fayolle. “Our goal is also to facilitate small and medium-sized enterprises’ access to financing and support them in their development projects for secure and competitive environmental transition.”
The EIB’s participation in this fund is also supported by the European Fund for Strategic Investments – the main pillar of the Investment Plan for Europe, commonly known as the Juncker Plan.
European Commissioner for Economic and Financial Affairs, Taxation and Customs Pierre Moscovici remarked: “The EU has undertaken to support sustainable investment projects such as the one presented here today. In guaranteeing the European Investment Bank’s EUR 80m investment in the Eiffel Essentiel fund, the Juncker Plan is enabling businesses in the clean energy and sustainable agriculture sectors to access financing essential to their development.”
Eiffel Essentiel's initial investors will account for total commitments of nearly EUR 200m at initial closing. The fund’s target commitment amount is EUR 400m.