ANNOUNCEMENT 11 Sep 2017

In September 2017, the European Investment Bank (EIB) signed a loan agreement with Amadéite Group to support its product development in the area of algae and marine proteins. 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, OLMIX (EGFF): https://www.eib.org/en/projects/loan/loan/20160293
The European Investment Bank, press release of 11 September 2017, EFSI: EIB supports the Amadéite Group, the world leader in marine biotechnology: https://www.eib.org/en/infocentre/press/releases/all/2017/2017-234-efsi-la-bei-soutient-le-groupe-amadeite-leader-mondial-des-biotechnologies-marines
Olmix Group: https://www.olmix.com/olmix-group
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
Instituto de Crédito Oficial: https://www.ico.es/en/web/ico_en/mission-and-functions

Inception date: 11 Sep 2017 | Removal date: open ended

State loan

The loan agreement between the European Investment Bank (EIB) and Amadéite Group was signed on 11 September 2017 and has a total value of EUR 30 million (approx. USD 36 million).

The loan will support the company's research, development and innovation 2017-2020 programme “Without Antibiotics thanks to Algae”. Activities under the programme include product development in the area of algae and marine proteins.

In this context, the CEO of Amadéite Group Hervé Balusson stated: "The support of the European Investment Bank represents strong recognition of the technologies developed and mastered by our teams and a show of trust in our future developments. This partnership will enable us to step up our progress in the biotechnology field based on algae and marine proteins. Beyond supporting our project, the renown of the European Investment Bank will have a positive impact for our developments on the international stage, which is essential for a future-oriented midcap company."

Amadéite Group is located in France and is owned by Olmix Group. Olmix Group is a provider of plant and animal health solutions provider including care products utilising algae and marine proteins. Olmix Group has its headquarters in France and has 28 locations in a number of countries around the globe. 

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: 11 Sep 2017 | Removal date: open ended

Loan guarantee

The EIB's loan to Amadéite Group signed on 11 September 2017 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 30 million (approx. USD 36 million) and will support the company's product development in the area of algae and marine proteins.

Amadéite Group is located in France and is owned by Olmix Group. Olmix Group is a provider of plant and animal health solutions provider including care products utilising algae and marine proteins. Olmix Group has its headquarters in France and has 28 locations in a number of countries around the globe.

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".