Innovation Finance via

European Fund for Strategic Investments (EFSI) and InnovFin Science

June 2019

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EIB Group Financing: ~EUR 100bn

European Fund for Strategic Investments

EU Guarantee EUR 26bn EIB contribution EUR 7.5bn*

Infrastructure and Innovation Window

EUR 23bn

SME Window

EUR 10.5bn

Deployed by EIF

Final investments: EUR 500bn

EFSI - European Fund for Strategic Investments EUR 33.5bn*

Deployed by EIB

* increase of EIB contribution and allocation to windows still subject to approval

by EIB Board of Directors.

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EFSI selection criteria

Be commercially sound, economically and technically viable

Within EU28 countries or cross-border operations

Contribute to EU objectives, sustainable growth & employment

Be mature enough to be bankable

Underpin EFSI objectives (emphasis on Additionality)

Match eligible sectors

Projects need to

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Intermediated lending - new financing through local partner

bank

Risk sharing - new financing through local partner bank and

NPBs

Portfolio risk sharing with financial partners (ABS)

InnovFin/ COSME Guarantees

Climate and infrastructure fund investment

Co-investments with eligible funds

Venture capital, SME and MidCap fund investment

Technology transfer/Business

angel fund investment

Direct MidCap Growth Finance/Quasi -Equity

EIF via local partners EIB via local partners Direct EIB financing

Loans for investmentand RDI

Start-ups Large businesses3000+ employees

Small companies< 250 employees

MidCaps< 3000 employees

Lower riskfinancing

Higher riskfinancing

EIB Group product range

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EFSI – State of play

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EFSI project approval life cycle

All EFSI operations have to follow EIB’s standard life cycle (IIW)

• The client contacts EIB offices - standard EIB due diligence, EIB project lead.

• Approval process - EIB Management Committee + EIB Board.

• EFSI criteria in terms of additionality and eligibility - EFSI Investment Committee.

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7

EIB - Innovation & Special Activities

856 m

2.4

2.7

5.4

7.7

8.6

15.6

13.3

16.1

13.5

13.9

13.6

104

108

123

150

237

213

- 50 100 150 200 250

- 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000

2013

2014

2015

2016

2017

2018

Total no. Projects

Total Lending volume (m EUR)

Total Innovation

Total Special Activities

Total number projs

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RDI Funding sources

RI life cycle, including project’s and promotor’s

financial sustainability, needs to be carefully

analyzed at the stage of project preparation

Grants – ERDF, Horizon 2020, National grants

Financial Instruments Debt

Equity

Guarantee instruments

Financial Instruments under EFSI and InnovFin

provided via EIG Group shall be repaid. Therefore,

the projects have to be technically and financially

viable

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InnovFin Science• InnovFin Science supports R&I investments by research

institutes, universities and research organisations (public or private);

• Financing of buildings and other infrastructure directly related to R&I activity are also eligible;

• The product is deployed directly by the EIB in the form of debt or equity-type financing from EUR 25 million;

• All of this initiative's instruments are driven by existing demand, with no prior allocations between sectors, countries or regions;

• Firms and other entities located in EU Member States and Horizon 2020 Associated Countries are eligible to become final beneficiaries;

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InnovFin Science

• Full name: “Research Institutes, Universities, Research and Technology Organisations Facility”

• Type of operation: DIRECT only(1)

• Riskiness: Non-Special Activities and Special Activities

• Geography: Full scope but no operation with Higher Risk Factor

• Format: Debt and Equity type

• EU contribution to FLP: 6.65%(2) of signed amount (both debt and equity-type)

• Eligibility:

• Recipient: Research institute, university or research organization

• Operation: R&I Activities, R&I Infrastructure, EUREKA, ERA

• Appraisal process: Normal EIB due diligence – no checklist with the EC

• Typical portfolio allocation for risk-sharing purposes: Debt-type

• Expected geographical focus: All eligible geographiesNote: (1) The EC has confirmed that an operation where a central government financing entity (such as the Ministry of Finance) borrows to

provide finance to final beneficiaries is considered as a Direct Operation in the spirit of the Delegation Agreement and hence eligible under

InnovFin Science

(2) Nil EU contribution for operations with Member States risk (A0 Loan Grading which requires nil capital allocation)

InnovFin Spain: Support for science

• Loan of EUR 1.2 billion to support science in Spain

• Managed by the State Research Agency

• Support the research projects of Public ResearchOrganisations and Unique Scientific and TechnicalInfrastructures

• Invest in several areas of science and technology,closely linked with Spanish industry => promote thedevelopment of patents and new areas of research.

• The EIB loan will mobilise total investment of EUR 2.5bnand will have a positive effect on attracting and retainingresearch talent in Spain.

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European Investment Advisory Hub

A tool to strengthen Europe's investment and business environment

A single access point to a 360 degree offer of advisory and technical assistance services

A joint initiative by the European Commission and the European Investment Bank

A cooperation platform to leverage, exchange and disseminate expertise

An instrument to assess and address unmet needs for advisory support

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Thank you!

For further questions: info@eib.org

mailto:i.tsanova@eib.org