Investment & Fund Management

The European Investment Fund (EIF) and Banque Internationale à Luxembourg (BIL) extended their InnovFin SME Guarantee Facility agreement, making an additional EUR 20 million available for innovative small and medium-sized enterprises (SMEs) and small mid-caps in Luxembourg. This extension is part of the European Fund for Strategic Investments (EFSI), which aims to boost investment and support economic growth across Europe.

The specific challenge faced by BIL was the need to enhance access to finance for innovative businesses in Luxembourg, particularly in light of increasing demand for funding in this sector. The tailored solution involved increasing the EIF’s guarantee from EUR 30 million to EUR 40 million, which allowed BIL to expand its lending capacity to a total portfolio of up to EUR 80 million. This increase is expected to facilitate loans to over 100 businesses, thereby directly addressing the financing gap for innovative projects.

As a result of this initiative, BIL has positioned itself as a key supporter of Luxembourg's innovation ecosystem, enabling startups and mature SMEs to launch new products, integrate innovative processes, and create jobs. The extension of the agreement not only demonstrates the effectiveness of the InnovFin initiative but also highlights the EIF's commitment to improving access to finance for SMEs, which is crucial for fostering innovation and economic growth in the region.