Transcript EIB AND EIF FINANCING INSTRUMENTS FOR INNOVATION Jussi Hätönen European Investment Bank.

EIB AND EIF FINANCING INSTRUMENTS FOR INNOVATION
Jussi Hätönen
European Investment Bank
EIB overview
The European Investment Bank is the European Union‘s long-term financing
institution. The Bank acts as an autonomous body set up to finance capital
investments furthering European integration by promoting EU policies.
EIB was created by the Treaty of Rome in 1958
EIB is a not-for-profit, policy driven institution
EIB is 100% owned by the 28 EU member states
EIB has subscribed capital of EUR 242.4 bn as of 2012
EIB is AAA/Aaa rated by Moody’s, S&P and Fitch
EIB funds itself on the capital markets: ~EUR 71 bn in 2012
EIB signed loans amounting to EUR 52 bn in 2012
EIB is the largest multilateral financing institution
EIB is the majority (62%) shareholder in the European Investment
Fund
EIF has share capital of EUR 3 bn and AAA/Aaa rated
EIF has almost EUR 7 bn of equity assets under mnagement
EIF has invested in about 400 funds, 230 of which VC
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Low
Instruments for SMEs and Mid-Caps
EIB/EIF MCI
EIB RSFF
Individual RDI Loans
RISK
RSI: Innovative SMEs
RSFF GFI
Direct (Co-)Investments
Pure RDI Invest. Focus
Mid-Caps only
EIF Equity
High
Fund of Funds
SIZE OF SINGLE TRANSACTION
EUR 25K
EUR 25m
EUR 300m
2nd Valley of Death
Funding
Phases
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EUR 7.5m
1st Valley of Death
Pre-seed
Seed
Funding
Start-up / Mezzanine/Growth
Commercialization / Industrialization
Growth / Stability
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EIF support for growth SMEs
Public Stock Markets
Portfolio Guarantees & Credit Enhancement
Formal VC Funds & Mezzanine Funds
VC Seed & Early Stage
Microcredit
Business Angels,
Technology Transfer
PRE-SEED PHASE
SEED PHASE
START-UP PHASE
EMERGING GROWTH
DEVELOPMENT
SME Development Stages
HIGHER RISK
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LOWER RISK
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EIF instruments
Venture capital
EIF is an active investor to venture capital funds (also mid-market)
Technology transfer structures and funds
European Angels Fund (EAF)
Equity to BAs and other non-institutional investors for co-investments under a framework
agreements (CFAs)
Pari passu investment between 250k and 5m with shared costs (no management fee)
Corporate Innovation Platform (CorIP)
Focuses on 4 strategic innovation themes: Digital Life, Heath & Wellbeing, Smart Things, and
Sustainability
Under each theme CorpIP invests to 8-10 early stage VC funds
Up to 10 corporate investors to each compartment with minimum investment of EUR 10m
EIF acts as the investment adviser, and commits up to EUR 50m to each compartment
Competitiveness and Innovation Framework Programme (CIP)
EU Guarantees provided under the SME Guarantee Facility (SMEG) (up for renewal)
Risk Sharing Instrument (RSI) for innovative SMEs and small mid-caps
Intermediated debt guarantee for companies less than 500 employees for financing their RDI
Guarantee rate of 50% for loans up to EUR 7.5m established by intermediary banks
Credit enhancement
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EIB instruments
Growth Finance Initiative (GFI)
Direct EIB lending between EUR 7.5 million and EUR 25 million for innovative Mid-caps (up
to 3000 employees)
EIB lending up to 50% of the company’s project (RDI) costs over 2-4 years
Flexibility in terms (mezzanine, seniority, tenures etc.)
Mid-Cap Initiative (MCI)
Complementary to the RSI instrument of EIF
Intermediated guarantee scheme for Mid-caps
Loans between EUR 15 million and EUR 50 million, with EIB guarantee up to 50%
Individual RDI loans (RSFF)
Direct lending instrument for sub-investment grade companies for their RDI expenditures
Loans between EUR 25 million and EUR 300 million (current average EUR 90 million)
50% of project (RDI) costs over a 2-4 year period
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THANK YOU
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