ANNOUNCEMENT 16 Mar 2018
In March 2018, the European Fund for Strategic Investment (EFSI) approved a loan guarantee to Bpifrance Financement to support mid-cap companies in France.
NUMBER OF INTERVENTIONS
The European Investment Bank, Financed Projects, BPIFRANCE MIDCAP INVESTMENT PLATFORM: http://www.eib.org/en/projects/loan/loan/20160805
The European Investment Bank, Project summary, Project No. 20160805, BPIFRANCE MIDCAP INVESTMENT PLATFORM: http://www.eib.org/en/projects/pipelines/pipeline/20160805
European Commission (13 January 2015): The Investment Plan for Europe: Questions and Answers: http://europa.eu/rapid/press-release_MEMO-15-3223_en.htm
EIB: European Fund for Strategic Investments - Questions and Answers. Available at: http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
On 16 March 2018, European Fund for Strategic Investment (EFSI) guaranteed by Bpifrance Financement's credit line to finance of French medium-sized companies. The loan guarantee has a total value of EUR 250 million (approx. USD 307 million).
More specifically, Bpifrance Financement will establish a platform and grant new loans to medium-sized companies' activities concerning investments in energy efficiency, business expansion, technology and other activities. These loans are guaranteed by EFSI.
According to the EIB, the purpose of this guarantee operation is "to increase the capacity of Bpifrance Financement to fund mid-caps, as a result of the regulatory capital relief resulting from the issuance of the guarantee."
A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support granted here is discriminatory.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet from 13 January 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative [i.e. the EFSI] will benefit from the EIB’s strong credit standing that enables funding at favourable conditions and across maturities".