ANNOUNCEMENT 05 Dec 2017

In December 2017, the European Investment Bank (EIB) signed a loan agreement with Grifols SA to support its research and development of finding new plasma-derived protein therapies. The loan will be guaranteed by the European Fund for Strategic Investment (EFSI).

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

The European Investment Bank, Financed Projects, GRIFOLS BIOSCIENCE R&D II SPAIN: http://www.eib.org/en/projects/loan/loan/20170093
The European Investment Bank, Project summary, Project No. 20170093, GRIFOLS BIOSCIENCE R&D II SPAIN: http://www.eib.org/en/projects/pipelines/pipeline/20170093
The European Investment Bank, Press release of 5 December 2017, The EIB and Grifols sign a new loan agreement to support research on rare and chronic diseases under the “Juncker Plan”: http://www.eib.org/en/infocentre/press/releases/all/2017/2017-351-the-eib-and-grifols-sign-a-new-loan-agreement-to-support-research-on-rare-and-chronic-diseases-under-the-juncker-plan
Grifols, Company: https://www.grifols.com/en/company
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

Inception date: 05 Dec 2017 | Removal date: open ended
Still in force

State loan

The loan agreement between the European Investment Bank (EIB) and Grifols SA was signed on 5 December 2017 and has a total value of EUR 85 million (approx. USD 100.5 million). The loan will support the company's research and development activities focussing on finding new "plasma-derived protein therapies to treat rare and chronic diseases." The loan contains a number of favourable financial conditions, including a maturity date in 2027, a two-year grace period and a fixed interest rate.

Grifols SA is a global pharmaceutical company producing plasma-derived medicines. The company has subsidiaries in 30 countries and supplies its products and services to more than 100 countries around the world. Grifols SA has its headquarters in Spain.

This is the second loan granted to Grifols SA with the first loan being signed in October 2015, see related state act. The EIB stated in connection with the first loan that it would: "... bolster Grifols’s position in the sector and strengthen its competitiveness, fostering the company’s growth and creating skilled jobs."

In September 2018 a third loan agreement was signed, see related state act.

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.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
Inception date: 05 Dec 2017 | Removal date: open ended
Still in force

Loan guarantee

The EIB's loan to Grifols SA signed on 5 December 2017 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 85 million (approx. USD 100.5 million) and will support the company's research and development activities focussing on finding new plasma-derived protein therapies.

The Spanish company Grifols SA is a global producer of plasma-derived medicines. The company has subsidiaries in 30 countries and supplies its products and services to more than 100 countries around the world. 

The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe. The EIB has designated EUR 7.5 billion of its capital for lending to European projects with a higher risk profile than usually taken on by the bank. To compensate for the increased lending risk, the European Commission has agreed to fully guarantee all lending under the EFSI up to a budget of EUR 26 billion. The loan described was issued under the EFSI and thus benefits from a full guarantee through the EU budget.

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".