ANNOUNCEMENT 04 Apr 2019

In April 2019, the European Investment Bank (EIB) signed a loan agreement with Maspex - GMW Sp. z o.o. Sp. k. The loan will support the Maspex group's investments related to its food and drinks production and storage facilities. 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, FOOD PRODUCTION MODERNISATION: https://www.eib.org/en/projects/loan/loan/20170966
The European Investment Bank, Project summary: FOOD PRODUCTION MODERNISATION: https://www.eib.org/en/projects/pipelines/pipeline/20170966
Maspex: https://en.maspex.com/maspex,maspex-group,3.html
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: 04 Apr 2019 | Removal date: open ended

State loan

On 4 April 2019, the European Investment Bank (EIB) and Maspex - GMW Sp. z o.o. Sp. k. signed a loan agreement having a total value of EUR 47 million (approx. USD 52.7 million). The loan is issued under the Agriculture and Bioeconomy Programme Loan, see related state act.

The loan will support Maspex group's investments related to its food and drinks production and storage facilities. According to the EIB: "The investment underpins the promoter's (ed. Maspex) strategy to increase competitiveness of its businesses through the modernisation and expansion of its production process and storage capacity."

Maspex - GMW Sp. z o.o. Sp. k. is part of Maspex Group. The Group is a producer of a long line of food and drink products. These are mainly juices, pasta, grain preparations, vegetable and fruit products including jams, tomato products, gherkins as well as instant products including soups, coffee creamers and cocoa drinks. The company has production site throughout Europe including in Bulgaria, Romania and Poland.  

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. 

Inception date: 04 Apr 2019 | Removal date: open ended

Loan guarantee

The EIB's loan to Maspex - GMW Sp. z o.o. Sp. k. signed on 4 April 2019 was issued under the European Fund for Strategic Investment (EFSI). The loan has a total value of EUR 47 million (approx. USD 52.7 million) and will support the company's investments related to its food and drinks production and storage facilities

Maspex - GMW Sp. z o.o. Sp. k. is part of Maspex Group. The Group is a producer of a long line of food and drink products. These are mainly juices, pasta, grain preparations, vegetable and fruit products including jams, tomato products, gherkins as well as instant products including soups, coffee creamers and cocoa drinks. The company has production site throughout Europe including in Bulgaria, Romania and Poland.

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".