What we do
Equity products
Technology Transfer
European Angels Fund (EAF) - Co-investments with Business Angels
Venture capital
The Social Impact Accelerator (SIA)
Lower mid-market
Mezzanine Facility for Growth
Pan-European Venture Capital Fund(s)-of-Funds programme
EFSI Equity instrument
Single EU Equity Financial Instrument
COSME - Equity Facility for Growth
InnovFin Equity
Private equity secondary market transactions
EIF-NPI Equity Platform
Debt products
AGRI Guarantee Facility
Credit enhancement
Cultural and Creative Sectors Guarantee Facility (CCS GF)
ENSI - Securitisation Initiative
Erasmus+ Master Loan Guarantee Facility
EREM debt products
Single EU Debt Financial Instrument
COSME - Loan Guarantee Facility
InnovFin SME Guarantee Facility
The SME Initiative
The SME Initiative Bulgaria
The SME Initiative Finland
The SME Initiative Italy
The SME Initiative Malta
The SME Initiative Romania
The SME Initiative Spain
Inclusive finance
EaSI Financial Instruments
EaSI Capacity Building Investments Window
EaSI Guarantee Instrument
European Progress Microfinance Facility
Entrepreneurs supported through Progress Microfinance
European Fund for Strategic Investments (EFSI)
How does EIF contribute to EFSI
How to apply for EFSI financing
Regional Development - Country and sector-specific initiatives
Baltic Innovation Fund (BIF)
Competitiveness Fund-of-Funds for SMEs in Romania
Regional Fund-of-Funds Romania
La Financière Région Réunion
Deep and Comprehensive Free Trade Area Initiative East Guarantee Facility (DCFTA)
Dutch Venture Initiative (DVI-II)
Dutch Growth Co-Investment Programme
European Recovery Programme (ERP)
ERP-EIF Co-Investment Growth Facility
ESIF Fund-of-Funds Czech Republic
ESIF Fund-of-Funds Greece
The Silesia EIF Fund of Funds
EstFund
FOSTER TPE-PME Occitanie
Greater Anatolia Guarantee Facility (GAGF)
G43 - Anatolian Venture Capital Fund Project
JEREMIE
LfA-EIF Facility
Luxembourg Future Fund (LFF)
Mezzanine 'Fund of Fund' for Germany (MDD)
Polish Growth Fund of Funds (PGFF)
Swedish Venture Initiative (SVI)
Turkish Growth and Innovation Fund (TGIF)
Scottish-European Growth Co-Investment Programme
Slovene Equity Growth Investment Programme (SEGIP)
The EIB Group Risk Enhancement Mandate (EREM)
Western Balkans Enterprise Development & Innovation Facility II (WB EDIF II)

Investment Plan for Europe: EIF and Altum sign agreement to benefit innovative businesses in Latvia

  •  
    Date: 14 October 2016

The European Investment Fund (EIF) and JSC Development Finance Institution Altum (Altum) have signed an InnovFin SMEG agreement to enhance access to finance to innovative small and medium-sized enterprises (SMEs) and small mid-caps in Latvia. This transaction benefits from the support of the European Fund for Strategic Investments (EFSI), the heart of the Investment Plan for Europe. The EU’s support for innovative Latvian companies under this transaction is expected to generate a portfolio up to EUR 30 million of guarantees on loans and leases.

The new agreement will allow Altum to provide guarantees at reduced rates to SMEs and small mid-caps over the next two years. EIF’s counter-guarantee is provided under the “EU InnovFin finance for Innovators” initiative with the financial backing under Horizon 2020, the EU Framework Programme for Research and Innovation. The deal would not have been possible so soon without the backing of the Investment Plan.

Commenting on the signature, European Commission Vice-President Valdis Dombrovskis, responsible for the Euro and Social Dialogue, also in charge of Financial Stability, Financial Services and Capital Markets Union, said: “I welcome the signature of the agreement between the European Fund for Strategic Investments (EFSI) and Latvia's national development institution, Altum. This is a step forward in making finance more accessible for innovative projects in Latvia's small and medium-sized enterprises. It is also a sign that the EFSI is improving the geographic distribution of its supported projects. I hope that the distribution can be further enhanced also for larger strategic investment projects. We must make sure that all economic actors and all countries, large and small, benefit from the investment offensive the Commission has recently proposed to expand.”

EIF Chief Executive, Pier Luigi Gilibert said: “Altum benefits already from a strong experience in providing specialized services to SMEs and small mid-caps in Latvia. I am therefore convinced that the agreement signed between EIF and Altum will allow for a higher number of Latvian innovative companies to benefit from financing solutions at favourable terms. I am pleased to see that EFSI is further extending its action in Latvia with this new InnovFin transaction.”

Reinis Bērziņš, Altum Chairman of the Board, said: “We are glad to announce the conclusion of the agreement with the European Investment Fund on the funding of the guarantee financial instrument within the InnovFin programme. This is the first project of Altum to be funded by the European Fund for Strategic Investments. Currently Altum is working on opening another similar project in the near future. Thanks to the funding of the InnovFin programme, Altum will be able to provide more loan guarantees on better terms, thus increasing the range and volume of the financial instruments channelled by Altum. Our estimate is that within next two year, these guarantees will support at least 100 companies.”

This transaction with Altum reflects the EU's commitment to rapidly launch concrete initiatives under the EFSI, accelerating lending and guaranteeing transactions capable of boosting jobs and growth in the EU.

About EIF

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 (SMEs) by helping them to access finance. EIF designs and develops 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. More information on EIF's work under the EFSI is available here.

About Altum

Altum is a state-owned development finance institution, which offers state aid for various target groups with the help of financial tools (such as loans, credit guarantees, investing in venture capital funds, etc.). Altum develops and implements state aid programmes to compensate for the market's shortcomings that can't be solved by private financial institutions. More information about Altum is available here.

About the Investment Plan for Europe

The Investment Plan focuses on strengthening European investments to create jobs and growth. It does so by making smarter use of new and existing financial resources, removing obstacles to investment, providing visibility and technical assistance to investment project. The Investment Plan is already showing results. The European Investment Bank (EIB) estimates that by October 2016, the European Fund for Strategic Investments (EFSI) triggered more than EUR 138 billion of investment in Europe.

Building on this success, the European Commission on 14 September 2016 proposed extending the EFSI by increasing its firepower and duration as well as reinforcing its strengths. Find the latest EFSI figures including a break-down by sector and by country here. For more information see the FAQs.

About InnovFin

The InnovFin SME Guarantee Facility provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF, and is rolled out through financial intermediaries – banks and other financial institutions – in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by EIF against a proportion of their losses incurred on the debt financing covered under the facility.

Press contacts:

 EIF: David Yormesor
Tel.: + 352 24 85 81 346, E-Mail: d.yormesor@eif.org

Altum: Sandra Eglīte
Tel.: + 371 6777 4244, E-Mail: sandra.eglite@altum.lv

European Commission: Siobhán Millbright
Tel.:+ 32 (0)2 29 57 361, E-Mail: siobhan.millbright@ec.europa.eu


 
 

Copyright ©

 European Investment Fund 2017 – The European Investment Fund is not responsible for the content of external internet sites.