ANNOUNCEMENT 01 Dec 2020
In December 2020, the European Investment Bank (EIB) granted EUR 35 million (approx. USD 42.1 million) financing support to Sipcam Oxon S.p.A. in order to support its research and development programme on new agrochemical products.
NUMBER OF INTERVENTIONS
European Investment Bank. Financed Projects. 01/12/2020. SIPCAM OXON AGRI-PRODUCTS DEVELOPMENT R&D. Available at: https://www.eib.org/en/projects/loans/all/20190645
European Investment Bank. Projects to be financed. 30/09/2020. SIPCAM OXON AGRI-PRODUCTS DEVELOPMENT R&D. Available at: https://www.eib.org/en/projects/pipelines/all/20190645
European Fund for Strategic Investments – EFSI. Scoreboard - AGRICULTURE AND BIOECONOMY PROGRAM LOAN II. 20/12/2019. Available at: https://www.eib.org/en/scoreboards/all/125675780
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
Sipcam Oxon: http://www.sipcam-oxon.com/public/
On 1 December 2020, the European Investment Bank (EIB) and Sipcam Oxon S.p.A signed a EUR 35 million (approx. USD 42.1 million) loan to finance the company’s RDI investment plan for 2020-2023, with particular attention to the development of new agrochemical and alternative crop protection products.
In this regard, the EIB also highlights these the resulting products “are expected to reduce the environmental footprint and contribute to a more sustainable agriculture”.
Sipcam Oxon is an Italian multinational group present in 23 countries across all continents that is specialised in the production, marketing and sale of plant protection products and chemical intermediates. In Italy, Sipcam Oxon S.p.A., owns an experimental centre where new products and formulations are tested and developed, especially in the fertilisers and seeds market segments.
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.
On 1 December 2020, the European Investment Bank (EIB) and Sipcam Oxon S.p.A signed a EUR 35 million (approx. USD 42.1 million) loan to finance the company's RDI investments for developing new agrochemical and crop protection products. This EIB loan was issued under the Agriculture and Bioeconomy Program Loan II approved in November 2019 (see related state act) and, therefore, backed with a guarantee from the European Fund for Strategic Investment (EFSI).
The EFSI is a joint initiative by the EIB and the European Commission to promote investment in Europe, acting as the main pillar of the Investment Plan for Europe. It provides first-loss guarantees enabling the EIB to invest in more and often riskier projects. The loan described above 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.