"European Investment Bank financing helps ensure that firms like Jennewein can grow in Europe, rather than taking their innovations to the United States for support and development."
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Summary sheet
Release date
31 July 2018
Status
Reference
Signed | 20/07/2018
20180330
Project name
Promoter - financial intermediary
JENNEWEIN (EGFF)
JENNEWEIN BIOTECHNOLOGIE GMBH
Proposed EIB finance (Approximate amount)
Total cost (Approximate amount)
EUR 15 million
EUR 40 million
Description
Objectives
Jennewein is a highly innovative German biotechnology food company focused on novel production processes for the synthesis of human milk oligosaccharides (functional nutritive sugars) for a wide range of applications, including nutritional, pharmaceutical and cosmetic products.
The project will cover research and development (R&D) costs, both operational expenditure (OPEX) and capital expenditure (CAPEX) related to the up-scaling of the production of the human milk oligosaccharides, clinical trials for the new products and related R&D activities.
Environmental aspects
Procurement
The project mainly concerns investments in R&D that are expected to be carried out in existing facilities already authorised for the same purpose and would therefore not require an environmental impact assessment (EIA) under the Directive 2011/92/EU. Full environmental details will be verified during the appraisal.
The promoter is a private company, not operating in the utilities sector and does not have the status of a contracting authority; thus the project is not subject to the EU directives on procurement.
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Documents
Environmental and Social Data Sheet (ESDS) - JENNEWEIN (EGFF)
Publication Date
15 Aug 2018
Document language
Main Topic
Lending
Document Number
84778160
Document Focus
Environmental Information
Document Type
Project Number
20180330
Sector(s)
Regions
Countries
Publicly available
Download now
scoreboard - EUROPEAN GROWTH FINANCE FACILITY
Publication Date
13 Sep 2019
Document Language
English
Main Topic
lending
Document Number
122912044
Document Focus
EFSI legal requirements
Document Type
Scoreboard
Project Number
20180667
Last update
19 Aug 2020
Sector(s)
Services
Countries
Bulgaria, Kenya, Ghana, Mexico, Philippines
Publicly available
Download now
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News & Stories
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Inside the project
How and Why
A breakthrough technology
Why
- Multinationals had tried to figure out how to manufacture oligosaccharides at a price low enough to make mass production feasible. Jennewein actually did it
- To build a R&D centre to expand human milk oligosaccharides product portfolio and increase production capacity
- Fill a market gap as commercial banks are reluctant to invest in an early-stage company in a new and innovative market.
How
- Financing in the form of venture debt with equity-like remuneration
- Because it’s not an actual equity investment, Jennewein’s founders and early investors retain their stake in the company, instead of diluting it.
Sectors & Countries
Story
Next stage for synthesised human breast milk sugar
Human milk is important to babies because it contains complex sugars called human milk oligosaccharides. This natural sugar source reduces the risk of infectious diseases in children by up to 50% and promotes the growth of organs, including the brain. Human breast milk is unique in its high level of oligosaccharides.
That’s also an impulse for this next stage in Jennewein’s progress. The company is partnering with Chr. Hansen, a larger company with industrial-level operations, so that it can produce sufficient quantities of breast milk to attract contracts to supply the big Far Eastern market. Hansen, a global bioscience Danish company acquired all shares in Jennewein. It plans to invest €200 million by 2025 in new production facilities.
Jennewein is one of the first companies to benefit from the European Investment Bank’s venture debt financial instruments, loans designed to support growing companies without putting pressure on their cash flows.
Venture debt, which is also called quasi-equity, allowed the EU bank to take on the risk of financing Jennewein’s developing technology with loans in 2015 and 2018. The instrument has proved how successful it can be, as Jennewein moves to the next stage of its industrial development with its takeover by the larger Danish company.
"This is an excellent example of the type of firm we can advance in Europe, and the key is providing the right financing ecosystem."
Financing health and innovation
Healthcare plays an important role in the EU’s economy, accounting for 8% of the total workforce and for 10% of its GDP. As the EU bank, we support healthcare projects that aim to ensure universal access to high-quality, safe and affordable services.
The life sciences are a vital economic sector with innovation at their very core. Continued development of the industry is crucial to ensure the health and well-being of European Union citizens, whilst stimulating research and development and contributing to the EU’s global competitiveness.
Whether it’s for our health, our children or our elderly, in future care will be based on innovative models. Meet the people already putting those new ideas into practice.
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Healthy sugar for baby formula
Jennewein Biotechnologie manufactures Human Milk Oligosaccharides for infant formula
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The EIB Venture Debt Summit showcases an innovative financial tool that helps start-ups grow without pushing their founders aside
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