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Portfolio of quasi-equity operations with eligible small and medium-sized enterprises (SMEs) and mid-caps, approved and executed by the Bank under a programme loan.
Programme loan to improve access to finance for innovative SMEs and mid-caps and to support private sector research, innovation and digitalisation.
The project is an umbrella instrument ("Programme Loan") to support new investments and investment programmes of European SMEs and Mid-Caps. It has the objective to address market weaknesses and failures constraining the availability of financing for such smaller companies in general, and particularly in the case of R&D investment carried out by innovative enterprises. The operation is thus fully in line with the Bank's objectives to promote lending to SMEs and Mid-Caps as well as support private sector Research, Innovation and Digitalisation. In particular, it is expected that the large majority of eligible counterparts would be innovative SMEs or Mid-Caps, whose competitive advantage resides in their ability to develop and bring to market higher value-added products and services. Continued RDI investments are thus fundamental to ensure the sustainability of this competitive advantage over time.
Through the individual sub-operations, this Programme Loan addresses market failures by supporting RDI activities which result in positive knowledge-related benefits (externalities) at the level of the financed counterparts and beyond. It will also address the failure in financial markets linked to asymmetric information: the promoters are SMEs and Mid-Caps and have difficulties in obtaining finance from other sources at all or at adequate terms, specifically for investments in high-risk and uncertain market application technologies.
The investments supported under this operation would strengthen Europe's knowledge and industrial capacity in areas of high future relevance, such as advanced manufacturing and digitalisation, health, safety and security as well as clean energy, resource efficiency and sustainable transport (in line with the Climate Action objectives of the EIB under the Climate Bank Roadmap).
The financing structures offered under this instrument are designed to support innovative, high growth SMEs and Mid-Caps and generate positive effects mainly by addressing high-risk investments that require long-term capital. In terms of the EIB contribution, a similar long term and highly innovative financing structure is not available from other market players at comparable terms and/or within the same crucial timeframe - these will be defined for individual operations under the PL. Flexibility to the clients can be provided for instance when it comes to drawdowns by offering tranching beyond what is typically available in the market, the length of the availability period, or the repayment profile.
The structure allows, where applicable, co-financing with other financiers / investors, and the EIB's involvement typically provides a strong signal to other market participants, and could thus generate a strong crowding-in effect. When it comes to the non-financial contribution, the EIB further provides financial advice and structuring expertise and technical contribution and advice.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.
Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.