Investment & Fund Management

The European Investment Fund (EIF) and Banques Populaires-Caisses d’Épargne (BPCE Group) entered into two significant guarantee agreements aimed at enhancing lending to small and medium-sized enterprises (SMEs) in France. The first agreement, part of the Risk Sharing Instrument (RSI) initiative, enables Banques Populaires to provide EUR 250 million in loans to innovative companies, backed by a 50% EIF guarantee supported by EU funding under the Seventh Framework Programme for Research and Development (FP7). This initiative specifically addresses the financing challenges faced by innovative SMEs and Small Mid-caps in France, offering them reduced interest rates and lower collateral requirements.

This RSI agreement marks a milestone as it is the first of its kind in France and the largest RSI deal in Europe to date, contributing to a total loan finance pool exceeding EUR 1 billion across the EU. The second agreement, under the Competitiveness and Innovation Programme (CIP), is projected to generate a loan portfolio worth EUR 1.8 billion, facilitating financing for approximately 50,000 French SMEs. This extension agreement with BPCE and the mutual guarantee institutions, SOCAMA, will significantly ease access to finance for SMEs, particularly by reducing collateral requirements for the next two years.

The overarching goal of these agreements is to stimulate lending to SMEs and small mid-caps, which are crucial for fostering innovation and economic growth in France and across Europe. The EIF's collaboration with BPCE aims to channel much-needed finance to innovation-driven businesses, thereby enhancing their competitiveness and supporting job creation in the region.