Investment & Fund Management
The European Investment
Full Credential Description
The European Investment Fund (EIF) and UniCredit Bank Austria (Bank Austria) signed the first InnovFin SME agreement in Austria, aimed at addressing the financing challenges faced by innovative small and medium-sized enterprises (SMEs) in the region. The specific issue at hand was the limited access to finance for these companies, which is crucial for their growth and innovation efforts. The agreement, supported by the European Fund for Strategic Investments (EFSI), allows Bank Austria to provide loans totaling EUR 200 million to innovative companies over the next two years, backed by a guarantee from the EIF under Horizon 2020.
This tailored solution not only enhances the availability of financing for SMEs but also offers them additional collateral at a low cost, which is essential given the collateral constraints many businesses face. The agreement is expected to significantly support the innovation agenda for Austrian SMEs and small mid-caps, facilitating their access to favorable loan terms. Bank Austria's Chief Executive Officer, Robert Zadrazil, emphasized that this initiative enables the bank to offer loans on advantageous terms, thereby reinforcing its role as a leading provider of financing solutions for innovative companies in Austria.
The quantifiable outcome of this partnership is the anticipated generation of a portfolio of EUR 200 million in loans, which is expected to lead to further investments, growth, and a quicker economic recovery in Europe. This initiative is part of a broader effort under the Investment Plan for Europe, which aims to stimulate investment and enhance competitiveness in the face of evolving economic challenges.