Call for Expressions of Interest ("EoI") to select Financial Intermediaries that will receive resources from the European Investment Fund acting through the JEREMIE Trust for Cyprus to implement the Funded Risk Sharing Financial Instrument
Reference number: Call for EoI No. JER-008/2010/1
Introduction
The JEREMIE initiative is a framework providing a series of coherent actions to promote increased access to finance for micro, small and medium-sized enterprises.
The JEREMIE initiative in Cyprus is organised through the European Investment Fund (hereinafter, "EIF") acting through the JEREMIE Trust (hereinafter, "JT"). Through the JT, the EIF manages funds made available from the European Regional Development Fund (hereinafter, "ERDF") and related public expenditure awarded for utilisation under the JEREMIE initiative.
As part of the Operational Programme "Sustainable Development and Competitiveness" for the period 2007-2013[1], the competent authorities of Cyprus have agreed to dedicate resources to the implementation of the JEREMIE initiative with the EIF, in accordance with Article 44 of the Council Regulation (EC) No. 1083/2006[2] (hereinafter, "Reg. 1083/2006") and in accordance with the provisions of the Trust Deed (hereinafter, "Trust Deed") entered into on 30 April 2009 between the Government of the Republic of Cyprus, represented by the Planning Bureau, the Cypriot Managing Authority for the Structural Funds and the Cohesion Fund for the programming period 2007-2013 (hereinafter, "RoC") and EIF. Relevant rules for implementing Reg. 1083/2006 are set out in the Commission Regulation (EC) No. 1828/2006[3] (hereinafter, "Reg. 1828/2006").
The cooperation between the RoC and the EIF acting through the JT is governed by the Trust Deed, which defines the type of cooperation and the operational modalities of the JT financing expenditure in respect of an operation, as this term is defined in Reg. 1083/2006 (hereinafter, "Operation") comprising contributions to support financial engineering instruments. The EIF acting through the JT is advised by the Trust's Protector, members of which are nominated by the Cypriot authorities (hereinafter, "Protector"). EIF in its capacity acting through the JT acts on the basis of its usual business principles and an investment strategy and planning for the implementation of the JEREMIE initiative.
The JEREMIE initiative is funded from the Operational Programme "Sustainable Development and Competitiveness" for the period 2007-2013, Priority Axis "Productive Environment", Objective "Support for the Micro to Medium size enterprises".
This Call for Expression of Interest targets financial engineering instruments referred to in Article 44 of Reg. 1083/2006 and is addressed to bodies or firms, whether public or private, which are interested in receiving resources out of the JT for the activities in respect of Operations (hereinafter "Financial Intermediaries"). Such activities shall be carried out in accordance with the contractual agreements to be entered into by the JT and the selected Financial Intermediaries (hereinafter, "Operational Agreement(s)").
The Financial Intermediaries should express their interest by completing and submitting an Expression of Interest, a template of which is attached hereto as Annex 1.
1. Definitions and Interpretation
In this Call for Expression of Interest, capitalised terms and expressions shall have the meaning attributed to them below, unless otherwise defined above or the context requires otherwise:
Applicant |
means a Financial Intermediary applying to this Call for Expression of Interest; |
Business Day |
means a day during which EIF Luxembourg office is open, and banks are open for general business in Cyprus and Luxembourg; |
Deadline |
means Monday, 12th April 2010; |
Eligibility Criteria |
means the criteria with which the Expressions of Interest and the Applicants must comply with and which are listed in Annex 2 hereof; |
Expression of Interest |
means a proposal sent by an Applicant in response to this Call for Expression of Interest, within the Deadline, to be drafted in accordance with the template attached hereto as Annex 1; |
JEREMIE |
means the initiative "Joint European Resources for Micro to Medium Enterprises" launched by the Commission and EIF, as member of the European Investment Bank Group, in order to promote increased access to finance for the development of SMEs in the European Union; |
EIB Group |
The EIB Group consists of the European Investment Bank (EIB) and the European Investment Fund (EIF); |
JT |
means the EIF in its capacity acting through the JEREMIE Trust for Cyprus, appointed under the Trust Deed; |
Operational Agreement |
means an agreement entered into between a Financial Intermediary and EIF on behalf of the JT regarding a Financial Instrument on the basis of this Call for Expression of Interest and the selection process; |
Protector |
means the supervisory body of the JT, set up in accordance with the provisions of the Trust Deed and whose members are appointed by the RoC; |
Quality Assessment Criteria |
means the quality assessment criteria applied by EIF at the sole discretion of EIF to the suitability of the Applicant and/or the proposed Financial Instrument according to the business standards of EIF and which are listed in Annex 2 hereof; |
Selection Criteria |
means the Eligibility Criteria and the Quality Assessment Criteria; |
Small and Medium-sized Enterprises or SMEs |
means micro, small and medium-sized enterprises as defined in the Commission Recommendation 2003/361/EC. |
2. Trustee
European Investment Fund, 96 Boulevard Konrad Adenauer L-2968 Luxembourg.
General internet address of the Trustee (URL): www.eif.org
Under the Trust Deed, the EIF which is appointed until the end of 2015 may be substituted in its role as Trustee. In the event of such substitution, RoC, or the entity appointed by RoC as new Trustee, will assume the full discretion and responsibility to perform the tasks of the Trustee and to implement the Operations in Cyprus, and may take over the Financial Instruments. The Operational Agreements will provide for the possible substitution of the European Investment Fund, in order to allow the transfer of the Operational Agreements to the successor entity.
3. Description of the activities expected from the selected Financial Intermediaries
The selected Financial Intermediaries will have to implement a financial engineering instrument briefly described in the table below (hereinafter, "Financial Instrument"). A Financial Instrument shall either be set up as an independent legal entity governed by agreements between the co-financing partners or shareholders or as a separate block of finance within a Financial Intermediary. As provided by Reg. 1828/2006, a separate block of finance shall be subject to specific implementation rules within the Financial Intermediary, stipulating, in particular, that separate accounts are kept which distinguish the JT resources invested in the Financial Instrument, including those contributed by the Operational Programme, from those initially available in the Financial Intermediary.
It is planned to allocate out of the JT an amount up to EUR 10 million to the Financial Instrument.
See below list of indicative allocation and the relevant Annex setting out the Selection Criteria and the description of the Financial Instrument.
Financial Instrument |
Indicative capital allocation (millions EUR) |
Applicable Annexes |
Funded Risk Sharing Financial Instrument |
Up to 10 |
Annex 2 (Financial Instrument: Description and Selection Criteria) |
The Financial Intermediaries may express their interest for a contribution up to the total amount allocated by the JT to the Financial Instrument.
The indicative capital allocated to the Financial Instrument, as well as the amounts contributed by the JT to the selected Financial Intermediary, may be increased, at EIF's sole discretion, if more funding becomes available during the JT implementation process.
To be noted that joint ventures and/or consortia can express their interest as long as they indicate/nominate one coordinating entity as a contractual counterpart for the EIF for the entire term of the Operational Agreement (in case of selection). Such Applicants are required to submit one, joint Expression of Interest.
4. Expression of Interest
A template for the Expression of Interest is attached here as Annex 1, and can also be found at the following addresses: www.eif.org , www.structuralfunds.org.cy.
The Expression of Interest includes the Applicant's identification, the project description, the supporting documents, the declaration of absence of conflict of interest and the statements regarding situations of exclusion.
Until no later than 15 Business Days before the Deadline, the Applicants may request clarifications regarding the Call for Expression of Interest or the nature of the Financial Instrument. Such requests must indicate the Call for Expression of Interest reference number and the name of the Applicant and shall be submitted in English via email to:
Regional Business Development Unit
European Investment Fund
Requests for clarifications from Applicants shall not receive individual replies. Instead, answers to all requests for clarifications received within the relevant deadline will be published together in a Clarification Document to be posted on the website www.eif.org.
EIF will, in principle, not contact any Applicant prior to the Deadline, unless it considers it necessary to clarify issues of a mere technical nature. However, should EIF discover any errors, inaccuracies, omissions or any other type of clerical defect in the text of the Call for Expression of Interest before the Deadline, EIF will correct the text and inform accordingly.
5. Language
The Expressions of Interest, including the submitted documents, shall be in English.
6. Submission of Expression of Interest
The Expressions of Interest shall be submitted on or before the Deadline both by (i) e-mail and (ii) registered mail or professional courier service. The Expressions of Interest sent by registered mail or professional courier service shall consist of a closed single package, and shall contain the Expression of Interest, together with its attachments, in paper form and in removable electronic storage medium (e.g. CD-ROM).
The Deadline for the submission of Expressions of Interest is Monday, 12th April 2010.
The Deadline applies (i) in case of e-mails to the reception by EIF and (ii) in case of registered mail or professional courier service to the date of dispatch proven by the post office stamp or a dispatch receipt.
The Expressions of Interest shall indicate the reference number of the Call (No. JER-008/2010/1) and the name of the Applicant and shall be sent to the following address:
Postal Address:
European Investment Fund
Attention: Regional Business Development Unit
96 Boulevard Konrad Adenauer
L-2968 Luxembourg
LUXEMBOURG
The outer envelope (package) shall indicate the following:
"Expression of Interest - Reference number of the Call (No. JER-008/2010/1) - Not to be opened by the reception - To be passed without opening to Regional Business Development Unit").
E-mail Address:
Attention: Regional Business Development Unit
info.rbd@eif.org
Prior to the Deadline and in the same manner as specified above, the Applicants may change or amend their Expressions of Interest by clearly indicating the parts to be changed or amended.
Prior or after the Deadline and in the same manner as specified above, the Applicants may withdraw their Expressions of Interest.
After the Deadline, an acknowledgement of receipt will be sent to the relevant Applicants by EIF via e-mail, which shall state the following:
The acknowledgement of receipt shall not be construed as a declaration of completeness of the Expression of Interest and the documents submitted therewith, nor any kind of assessment of the same.
7. Selection process
When selecting Financial Intermediaries, EIF is committed to respect fundamental principles, such as:
The Expressions of Interest will be examined by the EIF, on a comparative basis, using professional analysis and judgment, taking into account the Selection Criteria.
The EIF will reject those Expressions of Interest which do not comply with the Eligibility Criteria. Financial Intermediaries, whose application is rejected because of non-compliance with any of the elements reflected in the statements regarding situations of exclusion (Appendices 4 and 5 to Annex 1 hereto), may not present themselves for consideration in subsequent Calls for the Expression of Interest unless it is specifically evidenced that the reason for the exclusion no longer exists.
The expiration of the Deadline shall not prevent EIF, in limited cases if deemed necessary, from requesting and receiving from Applicants clarifications on issues of a mere technical or formal nature, provided that such clarifications shall neither provide an opportunity to the respective Applicants to unduly improve their applications nor otherwise distort the competition between the Applicants.
Applicants which are not excluded according to the Eligibility Criteria will go through the EIF selection process based on the Quality Assessment Criteria. The further selection based on the Quality Assessment Criteria, and the due diligence process if any, follows the standard procedures and guidelines applied by EIF to its business. The evaluation of proposals at this phase will be conducted under competitive terms and it is envisaged to select up to two Applicants.
In any phase of the selection process, EIF reserves itself full discretion to consider Financial Intermediaries and no Applicant has any claim or other right or may expect to be ultimately selected for financial support by the JT. Any negotiation of terms and conditions of Operational Agreements by no means entails any obligation for the EIF and/or the JT to enter into such Operational Agreement with the relevant Financial Intermediaries.
Financial Intermediaries which do not receive contributions from the JT are informed accordingly; the reasons for their Expression of Interest being rejected may be clearly communicated to them upon request.
Those Applicants, whose Expression of Interest is rejected, shall have the right to submit a written complaint by e-mail and registered mail or professional courier service, to the same address used for the submission of the Expressions of Interest above, within thirty (30) days of receipt of the letter of rejection. Any complaints will be dealt within the framework and in accordance with the EIB Group complaints policy (for further info please click on the link or visit www.eib.org).
8. Operational Provisions
The Financial Intermediaries, with which Operational Agreements will be eventually signed, shall be required to comply with the EIF anti-fraud policy, available in the website of EIF (www.eif.org), and with the relevant monitoring, reporting, publicity and auditing obligations required by the EU regulations and the Cyprus structural funds management and control system, applicable to ERDF, and by the Trust Deed. Such obligations are briefly described in the relevant Financial Instrument description documents, and will be defined in the relevant Operational Agreement.
ANNEXES
Annex 1. Expression of Interest (.pdf Format) (Word Format)
Annex 2. Funded Risk Sharing Financial Instrument: Description and Selection Criteria (.pdf Format) (Word Format)
Attachment 1: Indicative Reporting Template (.pdf)
[1] Such Operational Programme approved by the European Commission on 17 September 2007.
[2] Council Regulation (EC) No. 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No. 1260/1999 (Official Journal of the European Union L210 of 31.07.2006), as amended from time to time.
[3] Commission Regulation (EC) No 1828/2006 of 8 December 2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund (Official Journal of the European Union L371 of 27.12.2006), as amended from time to time, including by Commission Regulation (EC) No 846/2009 of 1 September 2009 amending Regulation (EC) No 1828/2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund (Official Journal of the European Union L250 of 23.09.2009).
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