EIF and Crédit du Nord Group sign a €100 million agreement for innovative companies in France
The European Investment Fund (EIF) i which is part of the European Investment Bank group i and Crédit du Nord Group together with its regional banks Courtois, Kolb, Laydernier, Nuger, Banque Rhône-Alpes, Société Marseillaise de Crédit, Tarneaud and Crédit du Nord have signed a guarantee transaction to increase lending to innovative small and medium-sized enterprises (SMEs) and small mid-caps in France. This transaction benefits from the support of the European Fund for Strategic Investments (EFSI) i, the heart of the Investment Plan for Europe.
Thanks to the EU and EIF’s risk-sharing agreement, Crédit du Nord Group and its subsidiaries will be able to provide over 200 loans at advantageous conditions to SMEs and small mid-caps over the next two years. EIF’s guarantee is provided under the “EU InnovFin finance for Innovators” initiative with the financial backing from Horizon 2020, the EU Framework Programme for Research and Innovation.
European Commissioner for research, science and innovation, Carlos Moedas, said: "The Juncker Plan is already set to benefit more than 500,000 small and medium-sized companies across Europe. This is incredible, and we must keep up this momentum. By providing EU support to SMEs we are helping create jobs and boost the local economy. 200 French businesses with innovative ideas will receive financing thanks to the agreement being signed today with Credit du Nord Group and its regional banks."
EIB Vice-President Ambroise Fayolle, said: “Supporting innovative SMEs that are geared towards greater competitiveness is part of our mission to foster sustainable growth and jobs in Europe. EIF is committed to supporting French SMEs and is pleased to be signing another SME agreement with the Juncker Plan in France, this time with a new intermediary. I am convinced that Credit du Nord Group is well-placed to develop access to finance for innovative businesses across the country. The Juncker Plan is continuing to make progress in France, with a current total of 105 operations approved by the EIB Group mobilising EUR 36.8 bn in additional investments.”
Crédit du Nord Group Chief Executive Officer Philippe Aymerich said: “ Within the French banking landscape, our Group is committed to financing the economy and supporting innovative French entrepreneurship, SMEs and small mid-caps. The close relationship we develop with our customers is embodied in our strong regional identity, which forms the very essence of our group. We stand by their side. We remain focused on satisfying our clients which is the cornerstone of our business model, rooted in our expertise and our local presence. I’m convinced that this operation combined with innovation and close relationships with SMEs gives a enormous legitimacy in the banking activity, as exercised by our teams.”
Support under EFSI, including the agreement with Crédit du Nord Group, translates into a quicker positive impact for InnovFin agreements, leading to further investments, growth and faster economic recovery in Europe.
About EIF
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe's micro, small and medium-sized businesses (SMEs) by helping them access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. More information on EIF's work under the EFSI is available here.
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About Crédit du Nord Group
Crédit du Nord Group consists of eight regional banks - Courtois, Kolb, Laydernier, Nuger, Rhône-Alpes, Société Marseillaise de Crédit, Tarneaud and Crédit du Nord - and one brokerage firm, Gilbert Dupont.
Crédit du Nord Group has 8,800 employees and a network of 880 branches, serving more than 2m individual customers, 290,000 professionals and non-profit organisations, and 55,000 businesses and institutional clients.
The strategy employed by the Group’s banks is based on three core aims: to be a benchmark in terms of the quality of its customer relations; to develop a high degree of individual and collective professionalism; to offer customers state-of-the-art services and technologies.
The quality and strength of Crédit du Nord Group’s results is recognised by the market and through Standard & Poor’s long-term rating of A and Fitch’s rating of A.
Crédit du Nord Group is a wholly owned subsidiary of Société Générale.
About the Investment Plan for Europe
The Investment Plan for Europe, the so-called Juncker Plan, is one of the European Commission's top priorities. It focuses on boosting investments to create jobs and growth by making smarter use of new and existing financial resources, removing obstacles to investment and providing visibility and technical assistance to investment projects.
The European Fund for Strategic Investments (EFSI) is the central pillar of the Juncker Plan. It provides a first loss guarantee, allowing the EIB to invest in more, often riskier, projects. The EFSI is already showing concrete results. The projects and agreements approved for financing under the EFSI so far are expected to mobilise more than EUR 250 billion in investments and support over 528 000 SMEs across all 28 Member States.
About InnovFin
The InnovFin SME Guarantee Facility provides guarantees and counter-guarantees on debt financing of between EUR 25,000 and EUR 7.5 million in order to improve access to loan finance for innovative small and medium-sized enterprises and small mid-caps (up to 499 employees). The facility is managed by EIF, and is rolled out through financial intermediaries - banks and other financial institutions - in EU Member States and Associated Countries. Under this facility, financial intermediaries are guaranteed by EIF against a proportion of their losses incurred on the debt financing covered under the facility.