ANNOUNCEMENT 22 Jul 2020

On 22 July 2020, the EIB provided financing worth EUR 50 million (USD 57 million).

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 22 Jul 2020 | Removal date: open ended

Loan guarantee

The EIBs EUR 50 million (approx. USD 57 million) loan with Sdf Spa signed on 22 July 2020 was backed by a guarantee from the European Fund for Strategic Investments (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.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 22 Jul 2020 | Removal date: open ended

State loan

On 22 July 2020, the European Investment Bank (EIB) and Sdf Spa signed an agreement worth EUR 50 million (approx. USD 57 million) for the project Sdf Tractors Rdi from Germany-Italy. The total cost of the project is estimated at EUR 103 million.

According to the project description issued by the EIB, The proposed project concerns RDI activities in the field of agricultural machinery, equipment and services focused on (1) Product development and product range consolidation, (2) Digitalisation and precision farming as well as (3) Vehicles electrification, carried out in the promoters R&D locations in Italy and Germany in the period 2020-23..

The objective of the project is defined as following: The project aims at further developing the current products as well as to completing and consolidating the product range to cover a wider power range. It also aims, with the introduction of new features, at enhancing the product and processes digitalisation, and at developing new solutions for precision farming as well as enhancing the vehicles electrification..

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.

 
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