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Annual Report 2011
6
As a result of the economic crisis and uncertainty regard-
ing sovereign risks, 2011 was a year in which new bank
finance for SMEs and institutional investment in venture
capital were significantly reduced.
As Europe’s leading developer of risk financing, EIF has
increased its counter-cyclical role in providing financial
instruments to boost entrepreneurship and innovation.
EIF has continued to provide this support throughout the
entire value chain of enterprise creation from early to
development stages by offering a tool box of targeted
products ranging from equity to guarantees and microfi-
nance. These instruments are deployed through selected
intermediaries for the benefit of European enterprises in a
counter-cyclical way.
EIF has actively participated in the development of EU
policy objectives and flagship initiatives, acting as a
market-oriented institution which achieves an appropriate
return on its capital through a good balance of fee and
risk-based income.
European entrepreneurs need sustainable financial sup-
port and in this context, highlights of EIF’s achievements
have been to:
■
Increase the overall volume of its equity commitments
and loan guarantees by 70% compared with 2010,
financing more than 50,000 new SMEs
■
Catalyse a total of 49
1
new funds, with overall target
fund sizes amounting to EUR 6bn
■
Issue guarantees to 47
2
financial intermediaries to
stimulate new loan portfolios of EUR 7.6bn
■
Complete equity, funding and guarantee transactions
with 15 microfinance institutions establishing EIF as
one of the most important providers of microfinance
support within the EU in 2011
■
Commit over EUR 461m of Structural Funds to finan-
cial intermediaries for the benefit of SMEs across 14
JEREMIE Holding Funds.
EIF’s products were deployed throughout the year, assist-
ing in the remediation of the liquidity crisis and underpin-
ning the provision of new venture capital and mezzanine
finance for European SMEs. In cooperation with manda-
tors and in response to SMEs’ current needs, EIF provided
a stimulus to growth, job creation and competitiveness
and achieved its Community Objectives as demonstrated
through its impact on the market.
Strategy and achievements in 2011
in EUR m
2011 2010 Variation
Commitments
Equity
1 126
930
+21%
Guarantees
1 461
619
+136%
Microfinance
67
8
+718%
Total
2 654 1 557
+70%
Catalysed volume
Equity
6 061
4 588
+32%
Guarantees
7 626
3 170
+141%
Microfinance
140
32
+340%
Total
13 827
7 790
+77%
Number of deals
113
78
+45%
1
Including signatures under JEREMIE.
2
Including signatures under JEREMIE.
EUR 6bn
of equity
catalysed
Despite the difficult market environment, EIF’s AAA rating
and stable outlook was confirmed by the rating agencies
Standard & Poors, Fitch and Moody’s.
However, due largely to two securitisation transactions
placed on the Danish market which were concluded in
2007, EIF recorded a net loss of EUR 10.2m.
Improved access to finance for European
SMEs – EIF´s key role in the European
market
Cornerstone investor and provider of venture and
growth capital for European SMEs
EIF provided risk finance to first
time and established venture
capital teams enhancing their
capacity to support SMEs and
helping them to reach critical
mass. In 2011, through a record
commitment of EUR 1.1bn in 49
venture and growth funds, an
overall EUR 6bn was mobilised.