Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and the French Institut pour le Financement du Cinéma et des Industries Culturelles (IFCIC) have collaborated to address significant financing challenges faced by small and medium-sized enterprises (SMEs) in the cultural and creative sectors in France. These sectors often struggle to secure funding due to the intangible nature of their assets, limited market size, and a lack of financial intermediary expertise tailored to their unique needs.
To tackle these issues, EIF and IFCIC signed two guarantee agreements under the Cultural and Creative Sectors Guarantee Facility, part of the EU's Creative Europe programme. The first agreement is a direct guarantee that enables IFCIC to increase its loan volumes significantly, targeting underserved sub-sectors such as performing arts, visual effects, publishing, and fashion design. This initiative aims to support a portfolio of over EUR 40 million in loans over the next two years.
The second agreement is a counter-guarantee, marking the first cross-border transaction under this facility, which focuses on supporting film producers across participating countries. This agreement is expected to facilitate a portfolio of more than EUR 90 million in loans to SMEs involved in film and TV production. Additionally, IFCIC plans to introduce a guarantee for new working capital loans aimed at early-stage film and TV productions.
As a result of these agreements, over 300 SMEs in the cultural and creative sectors are anticipated to gain access to essential financing. The EIF's Chief Executive, Pier Luigi Gilibert, emphasized the importance of these transactions in enhancing lending and guarantee activities for these sectors, which are crucial for European diversity and economic development. The initiative not only aims to improve access to finance but also includes capacity-building activities for financial intermediaries, equipping them with the necessary expertise to assess the specific business models and credit risks associated with the cultural and creative sectors.