The European Investment Fund (EIF) and SID Banka are launching a EUR 100 million investment programme – the Slovene Equity Growth Investment Programme.
The objective of the programme is to support innovative and fast-growing SMEs and mid-caps established or creating jobs in Slovenia. The investment programme is supported by the European Fund for Strategic Investments (EFSI), the core of the Investment Plan for Europe.
EIF and SID Banka each commit EUR 50 million to this jointly developed programme and the combined commitments of EUR 100 million are expected to catalyse additional private-sector investments into equity funds. On the basis of the 15 years contractual strategic partnership, a key programme objective is to support the emergence of fund managers, which focus a significant part of their investments into Slovenian SMEs and midcaps.
EIF will manage and deploy the Slovene Equity Growth Investment Programme, through fund investments and co-investments into companies, targeted by the programme. The programme is not restricted to any particular sector. Part of the investment programme - EUR 40 million - will be deployed with a particular market development and capacity building objective, and a separate selection process will be launch by EIF in 2018 to target emerging teams established in Slovenia and specifically focused on Slovenia.
The SID NPI mandate is one of the first financing programmes launched by the EIF under the EIF-NPI Equity Platform, of which both EIF and SID Banka are founding members, and the Investment Plan for Europe, in cooperation with EU National Promotional Institutions.
The agreement was announced during the EC-EIB Investment Conference in Ljubljana. Speaking at the event, EIF Chief Executive, Pier Luigi Gilibert said: “I am delighted that in less than a year since signing the Memorandum of Understanding with SID Banka, we have concluded a new EUR 100 million equity programme to support high-growth Slovenian businesses. This new agreement will support the emergence of a sustainable private equity market in Slovenia, by helping both national and international fund managers to target SMEs and midcaps.”
European Commissioner Violeta Bulc, responsible for transport, said: "Thanks to the Juncker Plan, Slovenian SMEs and mid-cap companies will be able to receive risk-capital financing and thus be able to grow their business. This is a successful example of cooperation between the EIB Group and a National Promotional Bank. I look forward to hearing about the future success stories of Slovenian entrepreneurs which contribute to the growth, jobs and competitiveness of European economy.”
EIB Vice President, Vazil Hudak said: “The EIB Group is a firm believer in entrepreneurship and the potential of innovative companies. This partnership with SID Banka will deliver additional finance via the co-investment scheme to support Slovenian companies. By mobilising other investors, including funds from the private sector, our equity investment should lead to overall investments of more than EUR 100 million for primarily Slovenian SMEs and mid-cap companies. Our support under this initiative will help companies to grow and innovative, leading to strong competitiveness in Slovenia.”
Mr. Sibil Svilan, President of SID Banka, said “Sustainable growth, competitiveness and internationalisation of Slovene companies, can not be achieved only by providing debt financing. Unfortunately in the past it was not possible to provide equity financing to Slovene companies, although there is a large market gap in this segment. To address this gap a new EUR 100 million programme developed by EIF in cooperation with SID banka shall be deployed by EIF to mobilise private equity investments in Slovene growth-stage companies, supporting their expansion and internationalisation. EUR 50 million of SID banka resources will be combined with EUR 50 million of resources from Juncker Investment plan for Europe to provide growth capital to Slovenian companies. This programme is also a milestone for capacity building of Slovene private equity environment and Slovenia-focused private equity investment funds that deploys buy-and-build investment strategies.”
About the European Investment Fund
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops both 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.
About the Investment Plan for Europe
The Investment Plan for Europe, the so-called Juncker Plan, is one of the European Commission's top priorities. It focuses on boosting investments to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing visibility and technical assistance to investment projects.
The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB Group to invest in more, often riskier, projects. The EFSI is already showing concrete results. The projects and agreements approved for financing under the EFSI so far are expected to mobilise more than EUR 240 billion in investments and support around 461,000 SMEs across all 28 Member States.
On 13 September, the European Parliament and Member States came to an agreement in principle on the extension and strengthening of the EFSI. This agreement extends the EFSI's duration as well as increases its financial capacity.
About SID Banka
SID banka is the Slovene export and development bank. The mission of SID Banka is to develop, provide and promote long-term financial services designed to supplement financial markets for the sustainable development of Slovenia.
16 studeni 2017