A joint initiative launched by European Investment Bank Group

|EIB & EIF| In cooperation with the European Commission.

INNOVFINMIDCAP

GROWTH FINANCE

Expected to make ≥ € 24bn of debt and equity financing available to innovative companies to support € 48bn of final R&I investments.

_ integrated & complementary financing tools and advisory services _ covering entire value chain of research and innovation (R&I) _ Supports investments in smallest to largest enterprise._ available across all eligible sectors under Horizon 2020, in EU Member States

and Associated Countries.

EU FINANCE > INNOVATORS

InnovFin tools cover a wide range of loans and guarantees.Financing is either provided directly or via a financial intermediary, most usually a bank.

FINANCIAL TOOLS

WHAT’S NEW

EU and EIB Group more than doubled their support for innovative firms in Europe.

2007-2013 programming period | FP7|, Risk-Sharing Finance Facility: _ financed 114 RDI projects to the tune of EUR 11.3bn _ signed 29 guarantee contracts with a total guarantee amount of over EUR 1.4bn.

2014-2020 PROGRAMMING PERIOD

INNOVATION > MIDCAP

_ Enables the EIB to lend to innovative companies _ Encourages banks to lend to and make business investment in

innovation_ Improves access to finance for innovative companies

INSTRUMENT OBJECTIVES

An instrument for MidCap Medium to larger companies < 3000 employees

Senior Bank Loan: debt financing obligation, Low risk, long-term

Subordinated Loan: Higher risk loan, ranks below other loans.

EIB DIRECT LOANS

TYPES OF LOANS

TYPES OF INVESTMENTS

Quasi-equity financing: mix of debt and equity in terms of ownership and claim to assets in case of default.

Mezzanine financing: hybrid of debt and equity financing, used to finance expansion of existing company. Debt convertible to ownership/equity interest in case of default.

EIB INVESTMENTS & BANK GUARANTEES

BENEFITS OF EIB

_ Large amounts and in a broad range of currencies_ Attractive interest rates reflecting the promotional nature of the EIB_ offers longer tenors (compared to alternative sources of finance)_ offers flexible growth capital with no or limited dilution for the shareholders_ provides a quality stamp and positive signaling effect,

Catalyst for participation of other banking or financial_ does not offer other banking services such as FX, swaps etc.

(no competition with the company’s house banks)_ Long-term lending strategy, does not sell its exposures to third parties_ Possibility of blending with EU funds_ EIB offers Technical Assistance

innovative products, processes and/or services with a risk of technological or industrial failure as evidenced by business plan. Company should comply with at least one of the following 2 criteria.

COMPANIES PRODUCING/DEVELOPING

ELIGIBILITYCRITERIA

CRITERIUM 1

Measured by employment or turnover:

_ Average annualised growth in turnover ≥ 10% year, over three year period ‐or_ Average annualised growth full time employees ≥ 5% year, three year period ‐ (≥ 100 employees at start of observation period)

FAST-GROWING ENTERPRISE

Company has significant innovation potential and/or is a R&I driven enterprise with ‐ at least one of the following:

_ certified accountants have highlighted R&I expenses/investment in the latest financial statements ≥ 5% of its annual turnover;

_ spend ≥ 80% of EIB loan in R&I expenses/investment in next 36 months as indicated in its business plan;

_ Has received investment from private equity fund ‐ or business angel;

RESEARCH & INNOVATION

CRITERIUM 2.1

_ Previously awarded grants, loans or guarantees from European R&I support schemes (e.g. Horizon 2020 or FP7) or funding instruments (e.g. Joint Technology Initiatives, "Eurostars") or through national or regional research or innovation support schemes over last 36 months;

_ Previously awarded an innovation prize over last 24 months;_ Previously registered at least one patent in last 24 months;_ Has its registered seat in a science, technology or innovation park or

technology cluster or technology incubator (activities relating to R&I);_ Benefited from tax credit or tax exemption related to investment in R&I in

the last 24 months.

CRITERIUM 2.2