The European Investment Fund (EIF) and ING Luxembourg have signed an agreement to increase lending to innovative small and medium-sized enterprises (SMEs) as well as small Mid-caps under InnovFin – EU finance for innovators, an initiative supported by the European Commission.

The new agreement allows ING Luxembourg to provide finance to innovative companies in Luxembourg for a total of EUR 50m over the next 2 years with the support of a guarantee provided by the EIF and backed under Horizon 2020, the EU Framework Programme for Research and Innovation. This is the first InnovFin SME guarantee signature in Luxembourg, enabling ING to offer innovative companies additional financing at favourable conditions.

Commenting on the signature at the event in Luxembourg, EIF Chief Executive, Pier Luigi Gilibert said: “I am pleased to be signing the first InnovFin SME Guarantee agreement in Luxembourg with ING for the benefit of innovative companies. Following this agreement, we are convinced that together with ING we can provide support to innovative businesses in need of finance in Luxembourg”.

Carlos Moedas, European Commissioner for Research, Science and Innovation, said: "According to this year's Innovation Union Scoreboard, Luxembourg is among the top countries in Europe in innovation performance. The InnovFin SME Guarantee agreement signed today will stimulate this performance further by benefiting SMEs, which are at the heart of our economy."

Luc Verbeken, CEO ING Luxembourg added: “ING is very proud to be the first partner of the EIF in providing finance to Luxembourg innovative companies. It is an important part of our efforts to support local companies and more specifically SMEs which are key actors in the development of the Luxembourg economy.”

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to SMEs and small mid-caps (firms with fewer than 500 employees) in need of investment and/or operating capital to finance research, development and innovation activities, with EU financial support. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.

About InnovFin SME Guarantee

InnovFin SME Guarantee provides guarantees and counter-guarantees on debt financing of between €25,000 and €7.5 million, in order to improve access to debt finance for innovative small and medium-sized enterprises and small midcaps (up to 499 employees). The InnovFin SME Guarantee is implemented by the European Investment Fund, and will be rolled out through financial intermediaries (banks and other financial institutions) in EU Member States and Associated Countries. Under the InnovFin SME Guarantee, financial intermediaries will be guaranteed by the EIF against a proportion of their losses incurred on the debt financing. InnovFin SME Guarantee is part of InnovFin - EU Finance for Innovators, a new range of EIB Group (including EIF and EIB) products to facilitate access to finance for innovative businesses. This transaction is supported with the financial backing of the European Union under Horizon 2020 Financial Instruments.

About EIF

The European Investment Fund's (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. EIF’s total net commitments to private equity funds amounted to over EUR 8.8bn at end 2014. With investments in over 500 funds, EIF is a leading player in European venture due to the scale and the scope of its investments, especially in high-tech and early-stage segments. EIF’s guarantees loan portfolio totalled over EUR 5.6bn in over 350 operations at end 2014, positioning it as a major European SME guarantees actor and a leading micro-finance guarantor.

About ING Luxembourg

ING is a global financial institution of Dutch origin offering banking services through its operating company ING Bank and holding a stake in the listed insurer NN Group NV. The purpose of ING Bank is empowering people to stay a step ahead in life and in business. ING Bank’s 53,000 employees offer retail and commercial banking services to customers in over 40 countries.

With a network of 16 branches distributed throughout the Grand-Duchy, ING Luxembourg aims to satisfy the varied requirements of its customers, individuals and professionals alike, in the best possible manner. Its teams consist of specialists with extensive know-how in their field. Not only are they trained in the latest financial management techniques, but they can also rely on the commercial relations and experience of a large international group.

About Horizon 2020

On 1 January 2014, the European Union launched a new research and innovation funding programme called Horizon 2020. Over the next seven years almost €80 billion will be invested in research and innovation projects to support Europe’s economic competitiveness and extend the frontiers of human knowledge. The EU research budget is focused mainly on improving everyday life in areas like health, the environment, transport, food and energy. Research partnerships with the pharmaceutical, aerospace, car and electronics industries also encourage private-sector investment in support of future growth and high-skilled job creation. "InnovFin – EU Finance for Innovators", the new generation of EU financial instruments and advisory services was developed under Horizon 2020 to help innovative firms access finance more easily. "InnovFin – EU Finance for Innovators" will help to inject up to EUR 48 billion in investments in Research and Innovation across Europe.

Press contacts:

EIF: David Yormesor
Tel.: +352 42 66 88 346, e-mail: d.yormesor@eif.org

ING: Yves Denasi
Tel.: + 352 44 99 96 32, e-mail: yves.denasi@ing.lu