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Process prior to our equity commitment

Before we engage with future and prospective partners and the decision is taken to commit, we go through a rigorous due diligence process.

EIF is a prime provider of guarantees and credit enhancement to catalyse SME lending.

Whilst EIF’s equity instruments help improve the availability of risk capital for SMEs, we also target SMEs’ debt requirements. With our guarantees and credit enhancement/securitisa-

EUR 4.3bn outstanding

commitments translate into EUR 32.3bn of loans

tion financing solutions, we protect our financial intermediaries’ capital by sharing the risk taken, with a view to stimulating and increasing the volume of loans they grant to SMEs.

The guarantee activity encompasses so-called “mandate” transactions, where we manage and distribute

Our guarantees and credit enhancement activity

Equity investment process

Eligibility check Meeting

Due diligence meetings & initial negotiations

Submission to Board – Authorisa-tion to negotiate

Closing

Commercial & legal negotiations / finalisation of fundraising

Contact / proposal from intermediary

EIF’s commitments are bound by a number of criteria besides com-mercial objectives and which are mainly linked to credit and policy requirements. EIF also requires that the vast majority of the underlying

SMEs in a portfolio are SMEs ac-cording to the EU definition.

The final decision to make an investment is taken by the Board of Directors.