10 June 2021
Promoter – Financial Intermediary
The Promoter is a clinical-stage biotechnology company focusing on the development of large-scale production processes of human milk oligosaccharides (HMOs) - complex nutrients which are found in human milk.
Additionality and Impact
The purpose of the loan is to provide direct equity-type financing under the EIB's Venture Debt Instrument to bridge the liquidity need of the innovative company 'Inbiose', an SME based in Belgium, which has been impacted by the Covid-19 pandemic. The Company is a small commercial stage biotechnology SME, focusing on the development of large-scale production processes of human milk oligosaccharides (HMOs) to produce complex carbohydrates in a cost-efficient way, addressing needs in industrial scales of novel food ingredients for markets such as infant formula, dietary supplements, medical nutrition and beverages. The financing of this project addresses the failure in financial markets for RDI-driven SMEs, arising from their limited access to financing as a result of factors such as information asymmetries, misalignment of incentives etc. Creation of knowledge and support of skilled jobs in Belgium will further contribute positively towards the EU's 3% RDI intensity target. Hence, the EIBs involvement in this project supports the development of products with important health benefits, which would otherwise have been significantly delayed due to the Covid crisis. The financing structure is adjusted to the investment needs of the Company, with a long tenor and partially deferred interest, minimising cash outflows.
The Promoter is an industrial biotechnology company focusing on the development of large-scale production processes of human milk oligosaccharides (HMOs) - complex sugars which are found in human milk.
- Professional, scientific and technical activities
Proposed EIB finance (Approximate amount)
EUR 15 million
Total cost (Approximate amount)
EUR 34 million
The research, development and innovation (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.
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.
Signed - 13/07/2021