11/04/23 1European Investment Bank

SME Consultation 2007/2008:New initiatives from EIB for SME financing

11/04/23 2European Investment Bank

The European Investment Bank (EIB)Long-term Finance Promoting European Objectives

European Union’s long-term lending bank set up in 1958 by the Treaty of Rome.

Mission: Support of EU policies

Lending operations totalled EUR 45.8bn in 2006, borrowings on the capital markets reached EUR 48bn.

SME support is one of 6 priority objectives, and is done either directly by EIB (through Global Loans) or through its subsidiary, the EIF (Venture Capital, SME guarantees).

11/04/23 3European Investment Bank

The European Investment Fund (EIF)Venture capital & SME guarantees

Established in 1994

Owned by: EIB

European Commission

Other European financial institutions

Resources: Own funds – subscribed capital

EU programmes

Trust operations (EIB, German Government)

11/04/23 4European Investment Bank

EIB’s PRODUCT OFFERING FOR SMEs (1) The basic principle: Cooperation with the banking sector

Bank with branch network or other intermediaries

SME

Global Loans Mid-Cap Loans

SME SME SME SME SME

Medium-long term loans

11/04/23 5European Investment Bank

EIB’s PRODUCT OFFERING FOR SMEs (2) The activity of the EIF

Venture Capital Funds

2007: EUR 521m invested in 33 funds

Financial Institutions

2007: EUR 1.4bn of guarantees issued in 26

operations

Participations Guaranties

SME SME SME SME SME SME

Equity, mezzanine finance, loans

11/04/23 6European Investment Bank

MARKET CONSULTATION TO OPTIMIZE EIB’S PRODUCT OFFERING FOR SMEs

11 SME Associations

52 Banks 15 Public support

institutions

SME CONSULTATION 2007/2008

11/04/23 7European Investment Bank

FINDINGS: Persisting Financing Gaps for SMEs

SME finance is a key topic throughout Europe

Financing gaps vary from country to country

Most affected:

Micro-enterprises

Start ups / research intensive SMEs

Innovative SMEs

SMEs in decisive growth phases

SMEs facing transmission

11/04/23 8European Investment Bank

CONCLUSIONS: 4 OUTSTANDING MESSAGES

1. Simplification of the existing products

2. Modernisation to include innovation in its largest sense

3. Development of risk-sharing, mezzanine products

4. From “one size fits all” to tailor-made solutions

11/04/23 9European Investment Bank

OBJECTIVE: IMPROVE ACCESS TO FINANCE FOR SMEs AT ATTRACTIVE CONDITIONS (1)

SMEs face the challenge

to finance “intangible”

investments

EIB is ready to support them by sharing the risk

11/04/23 10European Investment Bank

OBJECTIVE: IMPROVE ACCESS TO FINANCE FOR SMEs AT ATTRACTIVE CONDITIONS (2)

•Simplification

•Modernisation

•Increased Transparency

•Transfer of benefit to SMEs

11/04/23 11European Investment Bank

For more information…

http://www.eib.org/