European Investement Bank (EIB) SME and MIDCAPS Fund
FUND SIZE: EUR50 MILLION (On-balance sheet)
Qualifying Criteria
- Application must meet IDC and EIB mandated sectors;
- Available to SME and MIDCAP companies. MIDCAP means companies that have up to 3000 employees (full time equivalent);
- Funding provided for CAPEX and medium to long term working capital;
- Final Beneficiary (company) and project location must be South African;
- Total cost of a project must not exceed R450 million;
- Only eligible to Autonomous Enterprises, where the enterprise does not hold 25% or more of the capital or voting rights in one or more other enterprises and no enterprise has a stake of 25% or more of its capital or voting rights;
- Exempted Investors may hold up to 50% of the capital or voting rights but do not exercise a dominant influence. Exempted Investors are public investment corporations, venture capital companies and business angels, universities, non-profit research centers, institutional investors including regional development funds, autonomous local authorities with an annual budget of less than EUR10 million and fewer than 5 thousand inhabitants;
- EIB approval required before drawn down of the Funds’ facility; and
- Drawdown conditions apply.
Instruments and Pricing
- Loans;
- Minimum of R1 million and Maximum of R120 million per transaction;
- Normal IDC Risk pricing less 0.3%; and
- Aimed at transactions with longer repayment periods (8-12 years). Shorter periods may be considered on a case by case basis.
IDC (Owner)
