The new agreement will allow Inveready Venture Finance to provide EUR 6.6 million of loans over two years to innovative technology companies in Spain, with more expected in the coming months and therefore supporting the emerging entrepreneurial ecosystem in Spain. The loans will be enabled by an EIF guarantee under the “EU InnovFin finance for Innovators” initiative with financial backing from the European Commission's Horizon 2020 programme. The agreement will make it possible for Inveready Venture Finance to offer innovative companies additional financing at favourable conditions.
Commenting on the agreement, European Commission Vice-President Jyrki Katainen, responsible for Jobs, Growth, Investment and Competitiveness, said: "The agreement between the EIF and Inveready announced today is a good example of the type of risk financing the EFSI was created for. The Inveready Fund finances SMEs at an early stage in their development, which means they are not always eligible for bank loans, so the EFSI is helping to play a crucial role in SME financing."
EIF Chief Executive, Pier Luigi Gilibert commented: “We are pleased to be signing the first InnovFin SME Guarantee EFSI agreement in Spain. By providing finance for innovative companies through EFSI we can help to support Spanish businesses to develop and strengthen new products and services”.
Carlos Conti, CEO of Inveready Venture Finance commented: “We are delighted to count with the support of the EIF in this initiative. Venture Debt, which is common in mature technology markets, is a new instrument in Spain and with the support of the EIF’s InnovFin program we will be able to access a larger pool of companies more focused on intensive R&D and offer them improved market rates”.
This is the first InnovFin transaction in Spain signed thanks to EFSI support. The deal reflects the EIB Group’s commitment to respond swiftly to calls from Member States, the European Commission and the European Parliament for a rapid launch of concrete initiatives under EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU.
Source: European Commission