Public and private operators commit to attracting more tourists by adapting to new trends
A tailor-made financial engineering solution to supplement bank lending
M Capital has set up a debt fund dedicated to the development and modernisation of the Côte d’Azur’s tourism industry that brings together the region’s main economic entities (Caisse d’Epargne Côte d’Azur, Nice Côte d’Azur Chamber of Commerce and Industry and Métropole Nice Côte d’Azur) and the European Investment Bank (EIB).
Set up and managed by M Capital, the Fonds Tourisme Côte d’Azur (Côte d’Azur Tourism Fund) was developed in partnership with Caisse d’Epargne Côte d’Azur and the EIB, with the help of Métropole Nice Côte d’Azur and the Nice Côte d’Azur Chamber of Commerce and Industry.
The €60 million debt fund brings together public and private investors under a single investment scheme that aims to promote and accelerate tourism creation, renovation and recovery projects in the Côte d’Azur.
Private and public operators committed to sustainable and responsible tourism
Aimed at private and public tourism businesses in the Côte d’Azur, the fund’s objective is to fuel the transformation of tourism in the region by promoting diverse tourist experiences and facilities; to commit to sustainable and responsible tourism by adopting standardised public criteria; and to produce a leverage effect on regional projects by raising between €200 million and €300 million through co-investments.
A new and efficient tailor-made financial engineering solution
The Fonds Tourisme Côte d’Azur is a co-financing fund that offers an agile and flexible range of financing to supplement bank lending. As a driver of change, it demonstrates an entire region’s commitment to the sustainable and responsible development of the tourism industry and the attractiveness of the Côte d’Azur region as a tourist destination. Up to €2.5 million of financing will be granted per project, with 10 to 15 investments scheduled each year under the investment plan.
It targets a wide range of sectors, including hotels and restaurants, mountain tourism, water sports, wine tourism, perfumery, culture, new tourist experiences, business tourism, and sports and wellness, all of which will exemplify sustainable and responsible tourism.
EIB Vice-President Ambroise Fayolle said: “The European Investment Bank is pleased to be doing its bit to finance this new fund for companies that have been hit hard by the health crisis.Thanks to this financial support, SMEs in this vital sector for the Côte d’Azur economy will benefit from a tailored solution to help them continue investing in projects to develop sustainable and responsible tourism.”
Associate Director of M Capital David Aversenq said: “The launch of this debt fund is another major step in the development of our private debt business, with assets under management now close to €200 million.The Fonds Tourisme Côte d’Azur demonstrates our strong presence in the Sud region of France and especially the Côte d’Azur, where M Capital has been one of the most active investors for over 15 years. M Capital is pleased to have been able to bring together institutional investors as prominent as Caisse d’Epargne Côte d’Azur, a major financier in the region, and the European Investment Bank, which is demonstrating renewed confidence in us after having invested in our previous debt fund, the Fonds Tourisme Occitanie. We would also like to thank Métropole Nice Côte d’Azur and the Nice Côte d’Azur Chamber of Commerce and Industry for their involvement in the financing pool. With a consistent deal flow, we are excited and confident about the initiative and are already working on rolling out several operations.”
According to Christian Estrosi, Mayor of Nice, President of Métropole Nice Côte d’Azur and Vice-President of the Provence-Alpes-Côte d’Azur Region, “Métropole Nice Côte d’Azur, which stretches from the sea to the mountains, has major tourism potential. You can have breakfast overlooking the sea and go skiing in the afternoon. Where else in France can you find such variety? Our commitment to the Fonds Tourisme Côte d’Azur comes as we seek to support a flagship of our economy that has been severely impacted by the fallout of the health crisis. Now more than ever, we will need to be innovative and demonstrate resilience and unity to overcome this challenge together, and to preserve and even create jobs. I welcome this initiative which, once we have emerged from this crisis, will be one way we can return to growth – and in an environmentally sustainable manner.”
Claude Valade, Chair of the Management Board of Caisse d’Epargne Côte d’Azur, said: “This new scheme demonstrates Caisse d’Epargne Côte d’Azur’s strong desire to support one of the region’s key industries and to boost its development as a tourist destination alongside all the relevant stakeholders.”
Jean-Pierre Savarino, President of the Nice Côte d’Azur Chamber of Commerce and Industry, said: “Our objective is to support and accelerate the implementation of creation, renovation and recovery projects amid a crisis that has completely redefined an entire industry where one must evolve to recover.”
Our mission is to strike a balance between meaningful impact and profitability.
M Capital is developing a unique investment model to invest in businesses that help create new, growing economies that are resilient and inclusive.
We design and deploy sustainable investment solutions that enable private and public investors to finance and transform assets in the real economy.
As an impact investor, we work to come up with new strategies that can generate as many positive externalities as possible in order to:
Reduce our carbon footprint
Promote social diversity
Promote the circular economy and job creation
M Capital Private Debt is developing a unique credit model by mobilising mixed capital (public and private) to support the transformation of French SMEs and mid-caps and the transformation of the economy.
Our loans are complementary to traditional bank financing, offering greater agility and flexibility to the businesses and local authorities we support.
The Fonds Tourisme Côte d’Azur is the second debt fund managed by M Capital Private Debt after the €111 million Fonds Tourisme Occitanie (Occitanie Tourism Fund – www.fondstourismeoccitanie.fr).
CAISSE D’EPARGNE COTE D’AZUR
Caisse d’Epargne Côte d’Azur is a cooperative bank serving the Côte d’Azur region. Thanks to the dedication and commitment of its 1 656 employees, it has almost 700 000 customers, including 161 0000 cooperative shareholders, across 149 branches, five private banks and eight business centres.
Caisse d’Épargne Côte d’Azur covers two French departments – Alpes-Maritimes and Var – and the Principality of Monaco. It serves all types of customers, including private individuals, professionals, companies, social economy organisations, institutions and local authorities. Thanks to dedicated structures for water sports, high-end real estate, winegrowing, perfumery and tourism, it also supports the region’s key sectors.
It strives to provide the highest level of service in all areas: insurance, savings and savings management, loans, payment equipment, wealth management and real estate projects. Caisse d’Epargne Côte d’Azur is part of the BPCE Group following the merger of Caisses d’Epargne and Banques Populaires.
METROPOLE NICE COTE D’AZUR
Since its creation in January 2012, Métropole Nice Côte d’Azur, a metropolitan area covering 49 municipalities with a population of 550 000, has pursued an ambitious policy around a charming region that stretches from the shores of the Mediterranean to the peaks of the Mercantour. A hub for innovation where promising startups flourish, the area is also home to major international groups based in modern and extremely well connected facilities. Alongside this, tourism is a real economic driver thanks to authentic, high-quality services in line with its commitment to sustainable development. Métropole Nice Côte d’Azur’s participation in the Fonds Tourisme Côte d’Azur demonstrates its commitment to supporting business leaders working to uphold the highest level of service for tourists in the region.
CCI NICE COTE D’AZUR
The Côte d’Azur, or the French Riviera, is a world-famous tourist destination that welcomes 11 million visitors each year who come to enjoy a unique destination nestled between the Mediterranean and the Alps. Its sporting, maritime, mountain, cultural event and business tourism represents a turnover of €10 billion and 75 000 direct jobs. This is why the Nice Côte d’Azur Chamber of Commerce and Industry (CCI Nice Côte d’Azur) has created a dedicated tourism section (#FilièreTourisme06) whose mission is to:
Increase the performance and competitiveness of tourism microbusinesses
Support the attractiveness of the Côte d’Azur as a tourist destination
Promote, develop and contribute to economic activity
In response to current and future challenges, the Côte d’Azur must develop an economic model for the tourism of tomorrow in order to retain its destination status. CCI Nice Côte d’Azur, as a local economic operator, wants to help businesses adapt their tourism offer, which is why it has joined forces with the €44 million[CM1] Fonds Tourisme Côte d’Azur.
In a crisis context where one must evolve to recover, our objective is to support and accelerate the implementation of creation, renovation and recovery projects by financing around 40 projects. This participation in the Fonds Tourisme Côte d’Azur demonstrates our commitment to promoting recovery and enhancing the industry’s attractiveness, competitiveness and innovation.
Today, the European Investment Bank (EIB) priced its first ever £50 million digital bond using a combination of private and public blockchains operated and accessed via HSBC Orion – the bank’s tokenisation platform. It follows the recently adopted Luxembourg legal framework tailored to allow for the issuance, transfer and custody of dematerialised securities on distributed ledger technology (DLT) infrastructure.
The new operation being undertaken by BNL BNP Paribas and the EIB Group, which comprises the European Investment Bank (EIB) and the European Investment Fund (EIF), focuses on the real economy and is aimed at small and medium-sized businesses (with fewer than 250 employees), and mid-caps (companies with fewer than 3 000 employees). The Minerva 3 operation is technically a synthetic securitisation (with no asset assignment) on a portfolio of the bank’s performing loans.
Greek companies engaged in international activities will benefit from a new EUR 200 million trade finance partnership between the European Investment Bank (EIB) and HSBC Bank plc announced in Athens on Thursday, in the presence of Yiannis Tsakiris, Deputy Minister of Development and Investment. The initiative will support trade and export finance services provided by participating Greek banks to local companies and addresses a market gap that continues to restrict international business by Greek companies.