Pioneering Portuguese firms gain access to new funding

The European Investment Fund (EIF) and Portuguese investment bank Banco BPI have signed an agreement to increase lending to innovative SMEs and small mid-caps under the InnovFin initiative.

The new agreement allows Banco BPI to provide innovative companies in Portugal with access to €200m of financing over the next two years with the support of a guarantee provided by the EIF and backed under Horizon 2020. This is the first InnovFin SME guarantee signature in Portugal and second in Europe, enabling Banco BPI to offer innovative companies additional financing at favourable conditions.

Commenting on the signature, Carlos Moedas, European Commissioner for Research, Science and Innovation, said: “I am very happy that this agreement will extend a significant line of credit to innovative companies in Portugal of about €200m for the next two years. Innovation is the key driver for growth and jobs in Europe and Horizon 2020 is its major European policy tool. By giving access to finance for research and innovation in small and medium-sized companies, we support investments in growth and jobs for Portugal and the EU.”

The aim of the InnovFin SME Guarantee is to encourage banks or other financial institutions to lend to both SMEs and to firms with fewer than 500 employees that are in need of investment and/or operating capital to finance RDI activities. EIF chief executive Pier Luigi Gilibert said that he was “convinced that we will be able to support even more innovative businesses in Portugal in the coming years”. Financial institutions are being selected by the EIF following a call for expression of interest for financial intermediaries across Europe.