PMV EGF MIDCAPS RISK SHARING

Promoter – Financial Intermediary

PARTICIPATIEMAATSCHAPPIJ VLAANDEREN

Location

• Belgium

Description

Linked risk-sharing operation under the European Guarantee Fund (EGF) to support mid-caps and other eligible entities in the Flanders region, Belgium.

Additionality and Impact

The Covid-19 pandemic constitutes an unprecedented challenge with very severe socio-economic consequences. The proposed operation aims to alleviate the sub-optimal access to finance conditions of MidCaps, thereby preserving employment in a deteriorating economic context. The operation will be a risk-sharing operation scheme deployed by the EIB in Belgium under the pan-European Guarantee Fund ("EGF") .The objective of the EGF is to respond to the economic impact of the Covid-19 pandemic outbreak by ensuring that eligible entities and primarily MidCaps have sufficient liquidity available and access to finance to weather the Covid-19 crisis, and are able to continue their development in mid/long term. The operation will be implemented through Gigarant NV ("Gigarant"), an entity owned by the Flemish region and co-owned and managed by PARTICIPATIEMAATSCHAPPIJ VLAANDEREN ("PMV"). The operation consists of a counter-guarantee to Gigarant, partially reducing their credit risk exposure and thereby positively influencing (i) Gigarant's ability to continue providing guarantees on behalf of Belgian MidCaps and corporates, which in turn (ii) facilitates commercial banks' continued financing of those client segments.

Objectives

The objective of this operation is to support companies' access to liquidity and to improve their resilience to the fallout of the COVID-19 pandemic, as well as to support investment, and thereby also foster economic recovery in Belgium. The focus is primarily on mid-caps and large corporates active in the Flanders region, with exceptional allocations in eligible EU member states not excluded.

Comments

The intermediary will be Gigarant NV, an entity owned by the Flemish region and PMV.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 350 million

Total cost (Approximate amount)

EUR 1225 million

Environmental aspects

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Procurement

Final beneficiaries will be requested to comply with applicable national and EU legislation, as appropriate.

Status

Signed - 21/12/2021