Presentation to 13 th October 2015, Brussels, Belgium 13/10/2015 - - PowerPoint PPT Presentation

Innovation Finance Advisory | European Investment Bank 13/10/2015

Innovation Finance Advisory

Presentation to

13th October 2015, Brussels, Belgium

Innovation Finance Advisory | European Investment Bank 13/10/2015

InnovFin Product Overview

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Innovation Finance Advisory | European Investment Bank 13/10/2015

InnovFin intermediated products

• Designed to enable borrowing or investment

capacity and additional risk taking capacity with intermediaries

• Portfolio approach whereby whole decision

making is delegated to the intermediaries

• The intermediary needs to confirm the

eligibility of the final counterpart

• Unlike the Bank’s standard global loans to local

Banks, in these products EIB shares the risk of the final beneficiary MCG SME VC Local banks Funds Eligible counterparts

Guarantee Equity Loan Equity

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Innovation Finance Advisory | European Investment Bank 13/10/2015

How does MGF work?

• 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

EIF

Innovative Mid-Caps

3,000 Employees

Growth Finance / Mezzanine EUR 25m

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Innovation Finance Advisory | European Investment Bank 13/10/2015

InnovFin SME Guarantee

Up to 50% loss coverage (Principal + Interest 90D) Full Delegation to Financial Intermediaries Automatic Coverage/Inclusion Attractive Guarantee Terms Favourable Capital Treatment Guarantee and Counter-Guarantee

This guarantee instrument covers the risk related to losses of a portfolio

Innovation Finance Advisory | European Investment Bank 13/10/2015

Innovation Finance Advisory – What we do?

Innovation Finance Advisory | European Investment Bank

Project ct Adviso sory y

• Improve the bankability and the investment readiness
• f companies/projects needing funding to make

significant R&I investments

• Clients include R&I driven companies (midcaps or

larger), public-private consortia, Joint Technology Initiatives, PPPs, R&D clusters, EC and EU Member 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

• Business model
• Debt capacity analysis
• Capital structure
• Funding strategy
• Classic or innovative

(public) financial instruments

• Funding sources and

their eligibility criteria

• Governance
• Stakeholder engagement

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Innovation Finance Advisory | European Investment Bank 13/10/2015

Study on Access-to-finance for Bio-Based Industries (BBI) and Blue Economy (BE)

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• Backgr

ground

• und
• 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

• f the

he study udy

• Gather information about access to finance conditions for BBI and BE, formulate policy
• ptions 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

Innovation Finance Advisory | European Investment Bank

Innovation Finance Advisory | European Investment Bank 13/10/2015

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

• utline 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

• f 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

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Innovation Finance Advisory | European Investment Bank 13/10/2015

Annex

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Innovation Finance Advisory | European Investment Bank 13/10/2015

Web portal to provide eligibility information on InnovFin products

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Innovation Finance Advisory | European Investment Bank 13/10/2015

Web portal to provide eligibility information on InnovFin products

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