ANNOUNCEMENT 07 Dec 2018
In December 2018, the European Investment Bank (EIB) signed a loan agreement with Croatian Rimac Automobili to support its electric driving technologies and components' business activities. The loan will be guaranteed by the European Fund for Strategic Investment (EFSI).
NUMBER OF INTERVENTIONS
The European Investment Bank, Financed Projects, RIMAC (EGFF): http://www.eib.org/en/projects/loan/loan/20170799
The European Investment Bank, press release of 7 December 2018, Investment Plan for Europe: EIB supports Croatian Rimac Automobili in development of high performance electric vehicles and components: http://www.eib.org/en/infocentre/press/releases/all/2018/2018-330-investment-plan-for-europe-eib-supports-croatian-rimac-automobili-in-development-of-high-performance-electric-vehicles-and-components
Rimac Automobili: http://www.rimac-automobili.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
The loan agreement between the European Investment Bank (EIB) and Rimac Automobili was signed on 7 December 2018. The loan has a total value of EUR 30 million (approx. USD 34 million).
The loan will support the company's development of electric driving technologies as well as supporting the general transformation of the company to an electric vehicles' technology and components provider to the automotive sector.
In this context, the Vice president of the EIB Dario Scannapieco stated: "Today EIB partners with a company that writes the history of the global automotive industry. EIB is proud to support job creation, support the local economy and Croatian exports, as well as transition to environment friendly transport, and advance the European science, research and development."
Rimac Automobili has its headquarters in Croatia. The company is a manufacture of electric hypercars as well as a technology solutions provider.
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.
The EIB's loan to Croatian Rimac Automobili signed on 7 December 2018 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 30 million (approx. USD 34 million) and will support the company's development of electric driving technologies as well as supporting the general transformation of the company to an electric vehicles' technology and components provider to the automotive sector.
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".