Innovation Finance Advisory Presentation to 13 th October 2015, Brussels, Belgium 13/10/2015 Innovation Finance Advisory | European Investment Bank
InnovFin Product Overview 13/10/2015 Innovation Finance Advisory | European Investment Bank 2
InnovFin intermediated products • Designed to enable borrowing or investment capacity and additional risk taking capacity with intermediaries MCG SME VC • Portfolio approach whereby whole decision Guarantee making is delegated to the intermediaries Equity • The intermediary needs to confirm the Local banks Funds eligibility of the final counterpart Loan Equity • Unlike the Bank’s standard global loans to local Banks, in these products EIB shares the risk of Eligible the final beneficiary counterparts 13/10/2015 Innovation Finance Advisory | European Investment Bank 3
How does MGF work? Innovative EIF Growth Finance / Mezzanine Mid-Caps EUR 25m 3,000 Employees • Direct long term debt and mezzanine finance: EUR 7.5m – EUR 25m • Loans can be structured as economic equity (silent participation) • For innovative Mid-Caps and SMEs (eligible counterparty concept) • EIB can finance up to 50% of all investments over 3 years • Streamlined EIB approval process & English law 13/10/2015 Innovation Finance Advisory | European Investment Bank 4
InnovFin SME Guarantee This guarantee instrument covers the risk related to losses of a portfolio Up to 50% loss Full Delegation coverage Automatic to Financial (Principal + Coverage/Inclusion Intermediaries Interest 90D) Attractive Favourable Guarantee Guarantee Capital and Terms Treatment Counter-Guarantee 13/10/2015 Innovation Finance Advisory | European Investment Bank
Innovation Finance Advisory – What we do? • Business model Project ct Adviso sory y • Debt capacity analysis • Capital structure • Funding strategy • Improve the bankability and the investment readiness • Classic or innovative of companies/projects needing funding to make (public) financial significant R&I investments instruments • Clients include R&I driven companies (midcaps or • Funding sources and their eligibility criteria larger), public-private consortia, Joint Technology • Governance Initiatives, PPPs, R&D clusters, EC and EU Member • Stakeholder engagement States Horiz izontal A l Activit itie ies • Prepare studies on increasing effectiveness of financial instruments to address specific sectors/R&I projects’ needs • Develop “business case” for new financing mechanisms to support specific R&I policy objectives 13/10/2015 Innovation Finance Advisory | European Investment Bank Innovation Finance Advisory | European Investment Bank 6
Study on Access-to-finance for Bio-Based Industries (BBI) and Blue Economy (BE) • Backgr ground ound • Many projects/companies in this area struggle to raise financing due to: • High technological uncertainty; • Significant capital requirements typical of BBI and BE innovation activities; • Market prices volatility, lack of adequate infrastructure and resources scarcity • Pur urpos pose of of the he study udy • Gather information about access to finance conditions for BBI and BE, formulate policy options and evaluate the potential need for a dedicated risk finance instrument(s) at EU and/or Member State level to sustain and enhance investments in BBI and in BE • This will contribute to the delivery of EU Research and Innovation Policy Objectives in the field of industrial leadership and access to risk finance 13/10/2015 7 Innovation Finance Advisory | European Investment Bank Innovation Finance Advisory | European Investment Bank
European Investment Bank Disclaimer This Presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by the European Investment Bank (“EIB”). The terms and conditions are intended as an outline for discussion purposes only and made on an indicative basis. All figures set forth in this Presentation are subject to change, to a satisfactory due diligence and to all necessary internal approvals of EIB (in particular of its credit committees). The information in this Presentation reflects the prevailing conditions and the view of EIB as of this date and are accordingly subject to change and based on carefully selected sources believed to be reliable. EIB has not independently verified this information and does not make any representation or will be liable that such information is accurate, valid, timely and complete. This Presentation is provided without any liability whatsoever by EIB and shall not constitute any obligation of EIB to extend credit facilities to the Company or to carry out a due diligence review of the aspects relevant for the financing of the Project. Neither this presentation nor any of its contents may be duplicated, published or used for any other purposes without the prior written consent of EIB. European Investment Bank 13/10/2015 Innovation Finance Advisory | European Investment Bank 8
Annex 13/10/2015 Innovation Finance Advisory | European Investment Bank 9
Web portal to provide eligibility information on InnovFin products 1 3 2 13/10/2015 Innovation Finance Advisory | European Investment Bank 10
Web portal to provide eligibility information on InnovFin products 13/10/2015 Innovation Finance Advisory | European Investment Bank 11
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