GN STORE NORD - HEARING AIDS RDI

Promoter – Financial Intermediary

GN STORE NORD A/S

Location

• Denmark
• The Netherlands

Description

Research, development and innovation (RDI) investments to develop new hearing and acoustic devices.

Additionality and Impact

The project concerns a corporate R&D project of innovative company GN Store Nord, a company leading innovation within hearing aid, based primarily in Denmark. The promoter is a knowledge-based technological company focusing on developing novel innovative hearing and audio devices targeting unmet needs with high socio-economic impact. The project further builds on a regional cluster of excellence in hearing aid technology based around Copenhagen. The company's R&D intensity averages 8% annually, which contributes positively towards the EU's 3% R&D intensity target. EIB's involvement will help to ensure that the important benefits of bringing novel hearing aid solutions entailed under this project come to fruition in a timely manner despite the Covid-19 crisis. The products and services developed as a result of the project will improve the possibilities of social inclusion of people suffering from hearing disabilities, while lowering risk of injury and likely postpone dementia onset, therefore the social value of the project is considered to be positive and over and above the financial return.

EIB's contribution to the project stems from the combination of a financial advantage, flexible terms of the loan, and helping to crowd-in other financiers, thereby facilitating its full financing and implementation.

Objectives

The RDI activities focus on innovative solutions in hearing and acoustic technology.

Sector(s)

• Industry - Manufacturing

Proposed EIB finance (Approximate amount)

EUR 130 million

Total cost (Approximate amount)

EUR 277 million

Environmental aspects

The RDI activities are expected to be carried out in existing facilities that are already used for the same purposes and that are not expected to change their scope due to the project. An environmental impact assessment (EIA) is therefore not needed as per EIA Directive 2014/52/EU amending Directive 2011/92/EU. The full environmental details will however be investigated by the Bank's services during the project due diligence.

Procurement

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if at the project appraisal, the EIB were to conclude that the Promoter is subject to EU public procurement legislation then the Bank would duly inform the Commission Services and would require the Promoter to apply those rules.

Status

Signed - 17/12/2021