EFSI - Investment Plan for Europe: boosting jobs and growth

EFSI is an initiative launched jointly by the EIB Group - European Investment Bank (EIB) and European Investment Fund (EIF) - and the European Commission to help overcome the current investment gap in the EU by mobilising private financing for strategic investments. EFSI is one of the three pillars of the Investment Plan for Europe that aims to revive investment in strategic projects around Europe to ensure that money reaches the real economy.

EFSI should unlock additional investment of at least EUR 315bn
over a three year period.

EFSI is jointly funded by the EU and the EIB. It will benefit from a guarantee financed by the EU budget of EUR 16 billion; the EIB is contributing a further EUR 5 billion to EFSI in cash. EFSI has two components to support projects with wide sector eligibility: the SME Window implemented through EIF and the Infrastructure and Innovation Window deployed through the EIB. The financial instruments used for the purposes of the EFSI SME Window are mainly guarantees and equity investments.

EFSI structure

How does EIF contribute to EFSI?

As part of the EIB Group, EIF is committed to the implementation of EFSI. The investment volume expected to be triggered under the EFSI SME Window by summer 2018 amounts to EUR 75bn. This entails an estimated fifteen-fold leverage, meaning that every EUR 1 guaranteed by EIF would generate EUR 15 of investment in the real economy, at the level of SMEs and mid-caps. Year-end 2015 results lend support to the accuracy of this initial prudent estimate. EIF is delivering impressive results in favour of smaller businesses as part of the Investment Plan for Europe. 

As of 19.05.2016, EIF has already signed:

  • 185 transactions with EFSI contribution for a total amount of EUR 3,5bn expected to trigger more than EUR 48 bn of investments

For a detailed list of EIF's deals under EFSI see:

EFSI structure

The resources under EFSI will enable EIF to deploy its existing support for SMEs at a higher and faster rate than initially anticipated and to increase its response to a very strong market demand. Initial EFSI resources under the SME Window will be used to accelerate and enhance the deployment of existing EU flagship programmes - COSME and InnovFin - which EIF manages on behalf of the European Commission and to significantly increase by EUR 2.5bn the Risk Capital Resources (RCR) mandate for equity investments, which EIB has entrusted to EIF. 

The next phase of EFSI entails the launch of additional new initiatives, among which the cooperation with EIF shareholders and National Promotional Institutions (NPIs) is a key priority. Notably, the EIF-NPI Equity Investment Platform will be launched in the first half 2016. The platform represents a flexible, non-binding governance framework which offers the possibility for NPIs to match the total budget of investments under the EFSI SME Window on a 1:1 basis. More generally, it is an opportunity for EIF and NPIs to establish a closer, more coordinated operational interaction.

How to apply for EFSI financial resources?

For financial, guarantee or credit institutions and loan (debt) funds authorised to carry out lending or leasing activities to SMEs according to applicable legislation, established and operating in one or more of the EU Member States:
The basis for selecting partner institutions is an open Call for Expression of Interest. You can submit your application under the following EU initiatives:

For risk capital funds targeting SMEs and small mid-caps:
Please submit a comprehensive concept paper and/or draft private placement memorandum to EIF’s Equity Investment department. Read more  details on how to submit your investment proposal

For SMEs and small mid-caps:
If you are looking for finance, please address to the EIF financial intermediaries directly.
You will find a list at: http://www.eif.org/what_we_do/where/index.htm Please note that final funding approval lies solely with the financial intermediary. For information about finance available under further EU initiatives, please visit http://europa.eu/youreurope/business/funding-grants/access-to-finance

Read about EIB's role in EFSI


 
 

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