ANNOUNCEMENT 06 Feb 2018

In February 2018, the European Investment Bank (EIB) signed a loan agreement with Aerogen to support its investments in developing new medical technologies related to aerosol drug delivery. 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, AEROGEN INVESTMENT PROGRAMME: https://www.eib.org/en/projects/loan/loan/20160827
The European Investment Bank, press release of 8 March 2019, Irish firms see new financing opportunities following EUR 30 million EIB backing for Galway medtech firm: https://www.eib.org/en/infocentre/press/releases/all/2019/2019-073-irish-firms-see-new-financing-opportunities-following-eur-30-million-eib-backing-for-galway-medtech-firm.htm
Aerogen: https://www.aerogen.com/
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: 06 Feb 2019 | Removal date: open ended

State loan

On 6 February 2019, the European Investment Bank (EIB) and Aerogen signed a loan agreement having a total value of EUR 30 million (approx. USD 37 million). The loan will support the company's investments related to developing medical technologies related to drug delivery solutions.

In this context, the EIB stated noted in a press release that: "The new EIB financing will help to accelerate business development by Aerogen and further strengthen research and development by the company, including in specialist pharmaceutical fields. It is expected that 50 new jobs will be created in Galway following expansion of Aerogen research and manufacturing facilities backed by the new EIB loan."

Aerogen is an Irish medical technology company specialises in aerosol drug delivery. Its goods are utilised in "emergency departments and intensive care units in over 75 countries worldwide." 

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: 06 Feb 2019 | Removal date: open ended

Loan guarantee

The EIB's loan to Aerogen signed on 6 February 2019 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 30 million (approx. USD 37 million) and will support the company's investments related to developing medical technologies related to drug delivery solutions.

Aerogen is an Irish medical technology company specialises in aerosol drug delivery. Its goods are utilised in "emergency departments and intensive care units in over 75 countries worldwide."

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".