CIP Competitiveness & Innovation Programme Data as of 30th September 2014 - European Investment Fund
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CIP
Competitiveness & Innovation Programme
Data as of 30th September 2014
EIF
Disclaimer
This presentation contains general information about the implementation
results of the Competitiveness & Innovation Programme. It is given in
summary form and does not purport to be complete. It is current as of the
date of this presentation only and may change without notice. EIF and the
EIB Group have no obligation to update this information or to release any
revisions to this information. No representation or warranty, express or
implied, is or will be made and no liability or responsibility is or will be
accepted by EIF or by the EIB Group in respect of the accuracy or
completeness of the information contained herein and any such liability is
expressly disclaimed.
2
Competitiveness & Innovation Programme
(CIP)
CIP financial instruments (SMEG and GIF) are managed by EIF on behalf of the EC
Purposes:
Encourage the competitiveness of European enterprises
Support innovation and entrepreneurship activities
Provide better access to finance
Promote the increased use of renewable energies and energy efficiency)
Two financial instruments:
Guarantees: SME Guarantee Facility (SMEG)
Venture capital: High Growth and Innovative SME Facility (GIF)
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SME Guarantee Facility (SMEG)
Four windows to enhance access to finance for SMEs
SMEG was composed of four different windows to meet four specific needs in enhancing
access to finance for SMEs:
Loan Guarantee Window Micro-credit Window Quasi-equity Window Securitization Window
- Focuses on SMEs without - Focuses on micro- - Focuses on SMEs in - Focuses on SMEs without
a sectorial approach enterprises (Map of signed transactions – SMEG
73 agreements signed for EUR 18.6bn corresponding to an
aggregate budget allocation of EUR 587.6m
Countries eligible for CIP Guarantees where agreements have been signed
Other countries eligible for CIP Guarantees where no agreement was signed
Other countries and territories
Among others, financial Intermediaries include:
- Privredna Banka, Croatia - Siagi, France
- HAMAG Invest, Croatia - SOCAMA, France
- Slovene Enterprise Fund - UniCredit Bank, Hungary
- CKB, Montenegro - Alleanza di Garanzia,
- Cacanska Banka, Serbia Italy
- ProCredit Skopje, FYROM - Austria Wirtschaftsservice,
- CERSA, Spain Austria
- Microbank La Caixa, - Hipoteku Banka, Latvia
Spain - Cultura Sparebank,
- KfW, Germany Norway
- Finansbank, Turkey - A.T.I Fidi Gar, Italy
- Raiffeisen Bank, Bulgaria - Pekao Bank, Poland
- ProCredit, Romania - SPGM, Portugal
- Belfius, Belgium - GE Czech Republic
5SMEG – Implementation
Signatures
The Loan Window remains the flagship of SMEG
Micro & Quasi Equity
Indicators Loan Window TOTAL
Windows
Agreements 48 23 71
Countries 18 13 33
Committed budget EUR 415.2m EUR 172.4m EUR 587.6m
Committed guarantee volume EUR 6,777.3m EUR 1,922.2m EUR 8,699.5m
Leverage 36.8 16.3 30.8
6SMEG – Implementation
Final Beneficiaries
More than 350,000 SMEs were supported thanks to SMEG
Micro & Quasi Equity
Indicators Loan Window TOTAL
Windows
SMEs supported 216,397 139,704 356,101
Loan volume supported EUR 15,273m EUR 2,801m EUR 18,074m
Average Loan amount EUR 71k EUR 20k EUR 51k
Number of Employees 949,424 305,825 1,255,249
(at loan date)
Average Number of
4.4 2.2 3.5
Employees
7SMEG – Implementation chain (all windows)
in EUR m
EUR30,000.00
x 46 EUR27,327.00
EUR25,000.00
EUR20,000.00 x 31 EUR18,463.00
EUR15,000.00
EUR10,000.00 x 15 EUR8,702.10
EUR5,000.00
EUR587.60
EUR-
Used Budget Guaranteed exposure Loans supported Investment mobilised
8COSME
Competitiveness for SMEs
New Programming Period
2014 – 2020COSME – Fact Sheet
Signature of the Delegation Agreement between the EC and the EIF: 22 July 2014
Responsible EC Service: DG Enterprise and Industry
Timeframe: 2014-2020
Validity of the Delegation Agreement : 20 years (December 2034)
Financial Instruments:
Loan Guarantee Facility (LGF)
Equity Facility for Growth (EFG)
Beneficiaries: SMEs with no sector focus
Estimated budget for COSME Financial Instruments: EUR 1.32bn
Geographical coverage (as of the date of the signature): EU 28, Iceland, Montenegro, FYROM, Turkey -
additional countries might join at a later stage (e.g. Norway 2015)
No ex-ante country limits on the utilisation of the budget: Demand driven approach
Publication of the open Call for Expression of Interest: 4 August 2014
10COSME LGF – Loan Guarantee Facility
Successor of the CIP SME Guarantee Facility as part of the Europe 2020 strategy
EC facility enhancing access to finance for European SMEs
Call launched in August 2014 with an estimated budget of EUR 660m (2014 - 2020)
COSME LGF provides:
Free of charge capped portfolio guarantees and counter-guarantees for additional SME risk-taking
A securitisation option on mezzanine tranches of SME debt portfolios subject to additional lending
to SMEs
COSME LGF is implemented through Financial Intermediaries like guarantee schemes, banks and leasing
companies
COSME LGF aims at Enhanced Access to Finance for SMEs through Higher Credit Risk Transactions
With COSME LGF, Financial Intermediaries are encouraged to further support SMEs by going beyond
their current lending/guarantee practice or increase volumes
11The lessons learned from CIP – SMEG have
been incorporated into COSME LGF
The product has been very successful during the financial crisis and recovery - keep the main
features
Working Capital proved relevant under CIP and will therefore continue to be supported in
COSME
Count on a single window with added flexibility
Ensure State Aid Consistency
Provide clarification on combination of different instruments
Possibility of counting on ground-up cover (i.e. no Reference Volume necessary in every
guarantee agreement with financial intermediaries)
12COSME LGF vs. CIP – what is new?
COSME counts on a single flexible window providing capped guarantees (LGF) and a securitisation
option
Capped (counter-)guarantees would be provided at a guarantee rate of up to 50% and a guarantee cap
rate fixed at the level of expected losses (max 20%)
A maximum loan amount threshold of EUR 150,000 applies - larger loans can only be covered under the
COSME LGF if the Final Recipient does not meet any of the 12 InnovFin criteria
Financial Intermediaries have two options to provide additional risk taking:
Launch of a new more risky product (e.g. without collateral, start-ups) with ground up COSME
cover
OR
Substantial increase in volumes to high risk SMEs, with a Reference Volume
COSME LGF is State Aid consistent, i.e. it does not contain State Aid
COSME LGF covers investment and/or working capital financing, now including also credit lines and
bank guarantees
13What are Higher Credit Risk Transactions under
COSME LGF?
COSME LGF covers Higher Credit Risk Transactions to SMEs of two types:
Target Higher Risk Profile clients/products through:
- New product set up for Start-ups; OR
- Extension in maturities and/or reduction in collateral; OR “Unconditional”
Option 1 guarantee
- New products or existing products offered to previously excluded
client sectors
Ground up COSME cover
Increase in volumes of (guarantees of) loans to SMEs related to
- most risky 25% of current portfolio by internal rating; OR
- full portfolio in case of guarantee institutions and promotional “Conditional”
Option 2
banks guarantee
COSME cover is conditional on the Intermediary realising certain volumes
of activities as defined within the Guarantee Agreement
14COSME EFG – Equity Facility for Growth
Successor of the CIP High Growth and Innovative SME Facility ("GIF2")
Estimated budget: EUR 660m
Target Financial Intermediaries: investment funds, private equity funds and special purpose vehicles that
provide long-term equity and/or quasi equity to SMEs in their expansion and growth stage
Maximum size of each COSME investment in an eligible financial intermediary: EUR 30m (or equivalent
in a tradable currency)
EIF co-investment with own resources: 5% - EIF may also make co-investment alongside any EU
investment using other resources available to the EIF
Maximum duration: 20 years from the time of the signature of the Delegation Agreement - derogation to
this provision can be agreed in exceptional cases at level of the Steering Committee
15COSME EFG vs. GIF – what is new?
The High Growth and Innovative SME Facility ("GIF") under CIP Equity consisted on two windows
targeting: (i) early stage ("GIF 1") ; (ii) expansion and growth stage ("GIF 2")
Within new framework 2014-2020 the EC has created two separate programmes:
Horizon2020, in line with GIF 1
COSME, in line with GIF 2
Both programmes are not sector-focused, but whilst COSME has a generalist approach to funding SMEs,
Horizon2020 is focused on innovative companies
Under COSME:
no specific window for eco-innovation is foreseen, whilst this was the case under GIF 2 - data will be
collected on eco-innovation and climate/energy related instruments through specific reports
EIF has to ensure that the financial intermediaries provide information on their investor base as COSME
has a dual requirement of at least 50% of investments being provided by market-oriented investors and at
least 30% being invested by private sector investors
16Where to find complete information on
COSME
Full information on COSME can be found on EIF’s website:
COSME Loan Guarantee Facility:
http://www.eif.org/what_we_do/guarantees/single_eu_debt_instrument/cosme-loan-
facility-growth/index.htm
COSME Equity Facility for Growth:
http://www.eif.org/what_we_do/equity/single_eu_equity_instrument/cosme_efg/index.
htm
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