ANNOUNCEMENT 19 Jul 2019

In July 2019, the European Investment Bank (EIB) signed a loan agreement with the Spanish steel manufacturer Sidenor Aceros Especiales S.L.U. The loan will support the company's investments in new technologies and equipment for the purpose of bettering product quality and production efficiency. The EIB financing 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, SIDENOR SPECIALTY STEEL CAPEX & RDI: https://www.eib.org/en/projects/loans/all/20180803
The European Investment Bank, Project summary, SIDENOR SPECIALTY STEEL CAPEX & RDI: https://www.eib.org/en/projects/pipelines/all/20180803
The European Investment Bank, press release of 22 July 2019, Spain: EIB supports Sidenor’s innovation strategy with EUR 50 million loan under Investment Plan for Europe: https://www.eib.org/en/press/all/2019-194-eib-supports-sidenor-s-innovation-strategy-with-eur-50-million-loan-under-investment-plan-for-europe
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
Piaggio: https://www.piaggiogroup.com/en/group/where-we-are

Inception date: 19 Jul 2019 | Removal date: open ended
Still in force

State loan

On 19 July 2019, the European Investment Bank (EIB) and Sidenor Aceros Especiales S.L.U. signed a loan agreement having a total value of EUR 50 million (approx. USD 56 million). The loan is issued under the Mid-cap Programme Loan for Spain and Portugal 2, see related state act.

The loan will support the company's investments in new technologies and equipement to bettering product quality and manufacturing efficiency of the company's steel production line. 

According to the EIB, the objective of the supported investments "... are expected to strengthen the promoter's (ed. Sidenor Aceros Especiales S.L.U.) market position by enabling the manufacturing of higher quality special steels products as well as the development of new products to enter new industry segments. In addition, the investments in new equipment and facilities will raise manufacturing efficiency and support the company's competitiveness in the medium-long term."

Sidenor Aceros Especiales S.L.U. has its headquarters in Spain with branches in Germany, France, Italy and the United Kingdom. The company is a steel producer with pro

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

 
Inception date: 19 Jul 2019 | Removal date: open ended
Still in force

Loan guarantee

The EIB's loan to Sidenor Aceros Especiales S.L.U. signed on 19 July 2019 is issued under the European Fund for Strategic Investment (EFSI). The loan agreement has a total value of EUR 50 million (approx. USD 56 million).

The loan will support the company's investments in new technologies and equipement to bettering product quality and manufacturing efficiency of the company's steel production line. Sidenor Aceros Especiales S.L.U. has its headquarters in Spain with branches in Germany, France, Italy and the United Kingdom. The company is a steel producer.

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".