Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and Bank Leumi, along with LeumiTech, signed an agreement aimed at enhancing lending to innovative small and medium-sized enterprises (SMEs) and small mid-caps in Israel. This initiative, part of the InnovFin program supported by the European Commission, allows Bank Leumi to provide up to USD 100 million (EUR 93 million) in financing to innovative companies in Israel, backed by a guarantee from the EIF under Horizon 2020.
This agreement marks the first InnovFin SME guarantee signature in Israel, enabling Bank Leumi, a leading provider of innovative finance, to offer better financing conditions to the Israeli high-tech sector. The EIF's Chief Executive, Pier Luigi Gilibert, emphasized the significance of this partnership in supporting innovative businesses that require financial backing. The CEO of Bank Leumi, Rakefet Russak-Aminoach, expressed confidence that this collaboration would enhance funding for the Israeli high-tech industry, allowing for improved financing terms tailored to the unique needs of this sector.
The InnovFin SME Guarantee aims to facilitate access to debt finance for SMEs and small mid-caps, specifically targeting those engaged in research, development, and innovation activities. Financial intermediaries like Bank Leumi are encouraged to lend to these businesses with the assurance of EIF guarantees against a portion of their losses on the debt financing. This initiative is expected to significantly boost the availability of funds for innovative firms in Israel, fostering growth and development in the high-tech industry.